Trump gives Mexico 90-day tariff reprieve | Australian Markets

US President Donald Trump gave Mexico a 90-day reprieve from larger tariffs to barter a broader trade deal however was anticipated to concern larger remaining responsibility charges for many different international locations because the clock wound down on his Friday deal deadline.

The extension, which avoids a 30 per cent tariff on most Mexican non-automotive and non-metal items compliant with the US-Mexico-Canada Agreement on trade, got here after a Thursday morning call between Trump and Mexican President Claudia Sheinbaum.

“We avoided the tariff increase announced for tomorrow,” Sheinbaum wrote in an X social media post, including that the Trump call was “very good.”

Approximately 85 per cent of Mexican exports adjust to the foundations of origin outlined within the USMCA, shielding them from 25 per cent tariffs associated to fentanyl, in response to Mexico’s financial system ministry.

Trump stated that the US would proceed to levy a 50 per cent tariff on Mexican metal, aluminium and copper and a 25 per cent tariff on Mexican autos and on non-USMCA-compliant items subject to tariffs associated to the US fentanyl disaster.

“Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many,” Trump stated in a Truth Social post with out offering particulars.

Trump is anticipated to concern tariff fee proclamations later on Thursday for international locations that haven’t struck trade offers by a 12:01am (native time) deadline.

“The rest of those countries that either do not have a deal or have a letter, they will be hearing from this administration by the midnight deadline tonight,” White House press secretary Karoline Leavitt informed a news convention.

She stated there may nonetheless be some offers cut earlier than the deadline, including: “I do know foreign leaders are ringing his phone realising this deadline is a real thing for them tomorrow, and they’re bringing offers to the table.”

South Korea agreed on Wednesday to just accept a 15 per cent tariff on its exports to the US, together with autos, down from a threatened 25 per cent, as half of a deal that features a pledge to invest $US350 billion ($A544 billion) in US tasks to be chosen by Trump.

But items from India gave the impression to be headed for a 25 per cent tariff after talks bogged down over entry to India’s agriculture sector, drawing a higher-rate menace from Trump that additionally included an unspecified penalty for India’s purchases of Russian oil.

Although negotiations with India have been persevering with, New Delhi vowed to guard the nation’s labour-intensive farm sector, triggering outrage from the opposition occasion and a stoop within the rupee.

Trump’s rollout of larger import taxees on Friday will come amid more proof they’ve begun driving up shopper items costs.

Commerce Department information launched Thursday confirmed costs for home furnishings and sturdy family gear jumped 1.3 per cent in June, the most important gain since March 2022, after rising 0.6 per cent in May. Recreational items and automobiles costs shot up 0.9 per cent, essentially the most since February 2024, after being unchanged in May. Prices for clothes and footwear rose 0.4 per cent.

Trump hit Brazil on Wednesday with a steep 50 per cent tariff as he escalated his battle with Latin America’s largest financial system over its prosecution of his buddy and former President Jair Bolsonaro, however softened the blow by excluding sectors corresponding to plane, power and orange juice from heavier levies.

The run-up to Trump’s tariff deadline was unfolding as federal appeals courtroom judges sharply questioned Trump’s use of a sweeping emergency powers law to justify his sweeping tariffs of up to 50 per cent on practically all trading companions.

Trump invoked the 1977 International Emergency Economic Powers Act to declare an emergency over the growing US trade deficit and impose his “reciprocal” tariffs and a separate fentanyl emergency.