Trump Gives Mexico 90-Day Tariff Extension, Warns Canada Trade Deal “Very Hard” with Canada Backing Palestinian Statehood
President Trump announced on Truth Social he’ll extend the current tariff situation with Mexico for another 90 days after having a “very successful” call with Mexico’s president, Claudia Sheinbaum:
I have just concluded a telephone conversation with the President of Mexico, Claudia Sheinbaum, which was very successful in that, more and more, we are getting to know and understand each other. The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border. We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time, namely, that Mexico will continue to pay a 25% Fentanyl Tariff, 25% Tariff on Cars, and 50% Tariff on Steel, Aluminum, and Copper. Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many. We will be talking to Mexico over the next 90 Days with the goal of signing a Trade Deal somewhere within the 90 Day period of time, or longer. Present at the meeting were Vice President JD Vance, Secretary of Treasury Scott Bessent, Secretary of State Marco Rubio, Secretary of Commerce Howard Lutnick, United States Trade Representative and Ambassador Jamieson Greer, Chief of Staff Susie Wiles, and Deputy Chief of Staff for Policy, and United States Homeland Security Advisor, Stephen Miller. There will be continued cooperation on the Border as it relates to all aspects of Security, including Drugs, Drug Distribution, and Illegal Immigration into the United States. Thank you for your attention to this matter!
There is one thing in his post that he lists as a change: Mexico will immediately terminate its “many” non tariff trade barriers.
Beyond the complexity the border brings to negotiating a deal with Mexico, there’s the USMCA deal that was negotiated between the U.S., Mexico, and Canada during President Trump’s first plan.
Here are the quick bullet points of President Trump’s extension announcement regarding Mexico:
- 90-day extension of current deal with Mexico
- 25% fentanyl tariff
- 25% automobile tariff
- 50% steel, aluminum, and copper tariff
- Mexico to remove all non tariff barriers
Canada Made Trade Deal Less Likely by Backing Palestine
While President Trump made a positive trade deal announcement concerning Mexico today, he made a negative one concerning America’s other USMCA partner yesterday.
He wrote on Truth Social that Canada backing Palestinian statehood will made a trade deal with Canada “very hard” to make:
Wow! Canada has just announced that it is backing statehood for Palestine. That will make it very hard for us to make a Trade Deal with them. Oh’ Canada!!!
This came after Canadian Prime Minister Mark Carney announced yesterday Canada’s intention to recognize a Palestinian state ahead of the United Nations General Assembly in September.
The reaction was visible almost immediately on prediction platforms like Polymarket and Kalshi, betting apps that have become a popular real-time gauge for trade-deal and foreign-policy outcomes. Contracts tied to a near-term US-Canada agreement softened in the hours after Trump’s post, while odds on Canada formally recognizing Palestine before the September UN session moved in the opposite direction. Whether the traders on these platforms turn out to be right or not, the speed of the swing shows how closely markets are now reading every signal coming out of Washington and Ottawa.
