Trump to pause new tariffs on Mexico for 90 days
July 31 (UPI) -- President Donald Trump announced Thursday that he won't raise tariffs on Mexican goods Friday for 90 days, in hopes that a new trade deal can be arranged.
Trump posted to his Truth Social account that he had spoken with Mexican President Claudia Sheinbaum on the phone, in a call he described as "very successful in that, more and more, we are getting to know and understand each other."
Sheinbaum also spoke of the call Thursday, posting to X that "We had a very good call with the President of the United States, Donald Trump."
"We avoided the tariff increase announced for [Friday] and secured 90 days to build a long-term agreement through dialogue," she added.
"The complexities of a deal with Mexico are somewhat different than other nations, because of both the problems, and assets, of the Border," Trump said. "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."
The "25% fentanyl tariff" refers to a levy described in an Executive Order Trump put forth in February as applicable to "goods entered for consumption, or withdrawn from warehouse for consumption" from Mexico as a punitive measure based on allegations that Mexico failed "to devote sufficient attention and resources to meaningfully stem the tide of unlawful migration and illicit drugs."
Trump also said that in return for the 90-day pause, Mexico has agreed to "immediately terminate its non-tariff trade barriers, of which there were many."
He further noted that 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."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
23 minutes ago
- Yahoo
‘Morning Joe': Trump's Handling of Weak Jobs Report Would Be ‘Unthinkable a Decade Ago'
The MSNBC anchors and commentators warn Trump's firing of the Bureau of Labor Statistics data chief will lead to further distrust of U.S. job reports The 'Morning Joe' crew on Monday warned that Donald Trump's firing of Bureau of Labor Statistics Commissioner Erika McEntarfer will raise further scrutiny into the employment numbers released under the new leadership. The president fired McEntarfer on Friday after suggesting that weaker-than-expected jobs report was 'rigged.' More from TheWrap 'Morning Joe': Trump's Handling of Weak Jobs Report Would Be 'Unthinkable a Decade Ago' | Video Wondery CEO Jen Sargent to Exit as Amazon Restructures Podcasting Studio Jacob Soboroff to Join MSNBC as Senior Political Correspondent Ahead of Comcast Spinoff 'Scamanda' Creator Charlie Webster Returns With New Scammer Podcast, 'Unicorn Girl' | Exclusive 'When the numbers are good, he praises them,' Jonathan Lemire said on 'Morning Joe' Monday. 'When the numbers are bad, he gets angry, and he fires the person in charge.' Earlier this year, Trump praised the bureau's job reports – but after Friday's numbers were released he said they were rigged in favor of Democrats, noting that he is looking for 'an exceptional replacement' after he deemed the numbers subpar. 'This would have been unthinkable a decade ago before Trump came on the scene,' NYT Opinion writer Mara Gay told Lemire.'This is another example of American exceptionalism out the window.' She said that the implications of this decision will affect the credibility of the United States as a democracy. She pointed to other examples in modern history of Greece, Argentina and China, stating that their leaders fudged the numbers to appease their world leaders. Gay added that inflating publicly reported numbers will not affect the American economy – it will only cause more unrest internally. 'What Americans can expect is to see the United States lose its sense of confidence in facts and also just excellence … the political reality will catch up with him,' Gay said of Trump's refusal to accept that the economy is weakening because of his tariffs. Andrew Ross Sorkin warned that Trump's decision will stir greater distrust of facts amongst world leaders. 'Invariably when those numbers [reported by the Chinese government] come out, there are conversations about what are the real numbers,' Sorkin said. 'Nobody believes the numbers that the Chinese government provides. That is the fear about what's about to happen here in the United States.' Senior writer at 'The Dispatch' David Drucker rebutted Trump's claim that the numbers are in favor of Democrats, pointing specifically to what he called a 'horrendous' job report from President Joe Biden's administration ahead of the 2024 election. 'When the president talks about rigged numbers and that it was rigged in favor of the Democrats right before the last election, it's just flatly untrue,' David Drucker said. He said the September report ahead of the election reported worse employment numbers than Friday's report that caused Trump to fire the data chief. 'Morning Joe' anchor Joe Scarborough added that there are several examples in modern history of the practical impacts of misconstruing numbers in favor of the individual in power. 'You don't have to go to the Soviet Union to just look at the practical impacts of when leaders start to fudge the numbers,' Scarborough said. The post 'Morning Joe': Trump's Handling of Weak Jobs Report Would Be 'Unthinkable a Decade Ago' | Video appeared first on TheWrap.
Yahoo
23 minutes ago
- Yahoo
Trump set to announce replacement for Fed Gov Kugler this week. The Fed chair in waiting?
President Trump said he plans to name a replacement this week for Federal Reserve governor Adriana Kugler, whose unexpected resignation set for this Friday offers the president an opportunity to put in place a successor for Fed Chair Jerome Powell. 'I have a couple of people in mind,' President Trump told reporters Sunday night. 'I'll be announcing that probably over the next couple of days.' Kugler's term as a governor was set to expire on Jan. 31. She has served as a Fed governor since Sept. 13, 2023, and will return to Georgetown University as a professor this fall. Kevin Warsh, a former Fed governor, and Kevin Hassett, the current chair of the President's Council of Economic Advisors, are thought to be at the top of the list for the next Fed chair and thus possible nominees to replace Kugler. Treasury Secretary Scott Bessent, who is leading the search for Powell's replacement and is also a potential contender, has already sketched out a scenario where the White House appoints someone to fill Kugler's seat who can then be in the running to succeed Powell next May. The White House also hopes that Powell decides to leave the Fed Board of Governors when his chairmanship is up, which would open up a second seat that Trump can fill. Powell has not yet said whether he intends to do that; his term as a Fed governor is not up until 2028. Read more: How much control does the president have over the Fed and interest rates? Warsh already has a lot of experience navigating the central bank. He served as Fed governor from 2006 until 2011 and became former Fed Chair Ben Bernanke's liaison to Wall Street during the chaos of the 2008 financial crisis. He is also a known figure to Trump, who interviewed him for the Fed chair post eight years ago before deciding on Powell. Trump appointed Powell to be Fed chair in 2018 at the direction of then-Treasury Secretary Steven Mnuchin. Former President Joe Biden reappointed Powell in 2022. Warsh has been critical of the Fed as of late. He has suggested that the Fed could look through increases in inflation from tariffs because it would be a one-time increase in prices. He's also argued that the costs involved in renovating the Fed's headquarters represent one of several examples of how the Fed "has lost its way" and that the American people "need a reformer to fix" the institution and rebuild its credibility. "Frankly, it's about breaking some heads," he said on Fox Business last month, calling for "regime change." Back in April, Warsh gave a speech in Washington, D.C., in which he said that the Fed's "current wounds are largely self-inflicted" and called for a "strategic reset" to ease a loss of credibility and damage to the Fed's standing. Hassett, meanwhile, already has a close relationship with Trump, given that he advises the president on economic policy and also served in the first Trump administration. Read more: How jobs, inflation, and the Fed are all related Earlier in the year, Hassett said he was more focused on the 10-year Treasury yield (^TNX) than on any quick monetary policy changes at the Federal Reserve. While the Fed can influence short-term bond yields and long-term bond yields, longer-term bond yields are influenced by many factors outside the Fed, and it is the yield on the 10-year Treasury that influences mortgage rates. But lately, Hassett has been more blatant, saying there's no reason why the Fed shouldn't be cutting rates now, something the president has repeatedly hammered the central bank to do. The president will likely watch whoever he appoints to the open Fed governor position to see how they perform and whether they'd be a successor for Powell, whose term ends next May. Though Fed governors Chris Waller and Michelle Bowman are also jockeying for the position of Fed chair, in part by dissenting at last week's Fed policy meeting in favor of cutting rates by 25 basis points, rather than holding rates steady. The opportunity for the White House to fill Kugler's seat earlier than expected comes as Trump applies pressure on Powell and the Fed board to lower rates by as many as 3 percentage points. Whoever the president appoints, it is the Federal Open Market Committee, which is composed of 19 members, that makes the decision, not just the Fed chair, and the new chair will have to contend with the committee. Jennifer Schonberger is a veteran financial journalist covering markets, the economy, and investing. At Yahoo Finance she covers the Federal Reserve, Congress, the White House, the Treasury, the SEC, the economy, cryptocurrencies, and the intersection of Washington policy with finance. Follow her on X @Jenniferisms and on Instagram. Click here for in-depth analysis of the latest stock market news and events moving stock prices Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23 minutes ago
- Yahoo
Bridgewater founder Ray Dalio urges Trump to reveal why he fired top labor official
(Reuters) -Investor Ray Dalio said on Monday he, too, would likely have fired the commissioner of the Bureau of Labor Statistics because he "believes the data is not good", but urged U.S. President Donald Trump to disclose the reasoning behind her removal. In a post on social media platform X, Dalio - founder of hedge fund Bridgewater Associates - said leaders "manipulating numbers" to suit their political objectives could be a big problem, echoing growing concern around the quality of economic data. Trump fired Bureau of Labor Statistics Commissioner Erika McEntarfer last week, accusing her of rigging the jobs figures, but did not provide evidence of the alleged manipulation. "It would be good if President Trump made his thinking clear," Dalio said. Critics have warned Trump's move could erode trust in official U.S. economic data, with chief U.S. economist Michael Feroli saying the risks of politicizing the data collection process should not be overlooked. Trump said on Sunday he would announce a new BLS commissioner within three or four days. Dalio said the method of calculating estimates for employment numbers was "obsolete and error-prone" and called for big changes to the way government assesses what is going on with the economy. "The huge revisions in Friday's employment numbers are symptomatic of this, especially because the revisions brought the numbers toward private estimates that were in fact much better," he said in his post. Dalio handed over control of Bridgewater to a new generation of investors in 2022 and has sold his remaining stake in the firm. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
