Mexico has largely been spared the brunt of the Trump administration’s tariffs thanks to the USMCA trade agreement.
Published October 27, 2025
Mexican President Claudia Sheinbaum and US President Donald Trump have agreed to extend the looming trade deadline “for a few more weeks” to discuss outstanding issues with the US government.
Sheinbaum said Monday that he spoke with the other party on Saturday.
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In July, the United States agreed to suspend tariff increases on some Mexican products from 25% to 30% for 90 days, as the two countries continue to negotiate a new trade deal. That suspension was scheduled to end this week.
“We were interested in making sure that November 1 didn’t come without us communicating and that we agreed that our teams were still active,” Sheinbaum said at a regular morning news conference, adding that the two countries are seeking to resolve 54 outstanding trade barriers.
“We are essentially solving this problem,” she said.
Following Sheinbaum’s remarks, the Mexican peso rose 0.29% to 18.38 pesos to the dollar.
Mexico has largely been spared the brunt of the Trump administration’s tariffs thanks to the 2020 United States-Mexico-Canada Agreement (USMCA), a trade deal that is up for review next year.
In early October, Mr. Sheinbaum said he was confident Mexico would reach a favorable deal with the United States on trade and planned to unveil new developments in projects to develop electric vehicles, semiconductors, satellites, drones and artificial intelligence laboratories.
“We are continuing our work and there are no circumstances in the near future that would result in special tariffs being implemented on November 1,” Scheinbaum said.
President Trump announced last week that he was ending trade negotiations with Canada, but the White House expressed dissatisfaction with the progress of the negotiations.
Asked how Mexico would react and whether Mexico could negotiate with Canada separately, Sheinbaum said last week: “We can’t get ahead of ourselves.”
