Mexico, US Extend Trade Deadline as Sheinbaum, Trump Seek Final Deal

Mexican President Claudia Sheinbaum and US President Donald Trump have agreed to extend a critical trade deadline by several weeks, giving negotiators more time to resolve outstanding disputes and avert a tariff hike.

Sheinbaum said on Monday that she spoke with Trump on Saturday to secure the extension, which will delay the scheduled increase in tariffs on Mexican exports from 25 to 30 percent. The pause, initially agreed upon in July, was due to expire this week.

“I was interested in making sure that November 1 didn’t arrive without us having communicated and that we were in agreement that our teams were still working,” Sheinbaum told reporters during her daily morning press conference. “We’re practically closing this issue.”

According to the president, both sides are working to resolve 54 outstanding trade barriers, and negotiations are “moving in a positive direction.”

The Mexican peso strengthened slightly following her comments, gaining 0.29 percent to trade at 18.38 per US dollar.

Mexico has been relatively insulated from Trump’s broader tariff campaign, thanks to the United States-Mexico-Canada Agreement (USMCA), the trilateral pact that replaced NAFTA in 2020. The agreement is due for review next year, and both Mexico and the US are keen to avoid any disruption that could unsettle cross-border trade flows.

Sheinbaum also emphasized that Mexico continues to pursue a “forward-looking industrial strategy,” highlighting new initiatives in electric vehicles, semiconductors, satellites, drones, and artificial intelligence.

“There is no situation in the near future where there could be any special tariff on November 1,” she reassured.

The extension comes as Washington’s relations with its northern and southern neighbors diverge. Last week, Trump announced that he was ending trade talks with Canada, citing “frustration” with the pace of negotiations. When asked if Mexico might negotiate separately with Canada, Sheinbaum declined to speculate, saying only:

“Let’s not get ahead of ourselves.”