Mexican President Claudia Sheinbaum announced on Monday, October 27, 2025, that she and U.S. President Donald Trump have agreed to extend a looming trade deadline for “a few more weeks,” granting both sides additional time to resolve outstanding issues in negotiations. The extension averts, for now, the imposition of steep U.S. tariffs on Mexican imports that had been set to take effect this week.
Background to the Extension
The U.S. had threatened to raise tariffs on a wide range of Mexican goods to 30% unless a new trade framework was finalized within a 90-day window. That deadline was due to expire on Thursday, October 30. Sheinbaum confirmed that during a telephone call with Trump on Saturday, the two leaders agreed to prolong talks, citing progress but acknowledging that several non-tariff trade barriers remain unresolved Yahoo Finance Aljazeera.
Market and Political Reactions
The announcement provided immediate relief to financial markets. The Mexican peso strengthened, trading at 18.38 per U.S. dollar following Sheinbaum’s remarks Yahoo Finance. Business groups in both countries welcomed the reprieve, though many warned that prolonged uncertainty could still disrupt supply chains and investment planning.
Politically, the extension underscores the delicate balance Sheinbaum faces: defending Mexico’s economic interests while maintaining constructive ties with Washington. For Trump, the move reflects a willingness to delay punitive measures while keeping pressure on Mexico to make concessions.
Outstanding Issues
Negotiators are still working through disputes over agricultural standards, labor provisions, and digital trade rules. While both governments insist they are close to a deal, analysts note that the talks remain vulnerable to political shifts, particularly given Trump’s hardline stance on trade and border policy.
Looking Ahead
Sheinbaum said she expects to speak with Trump again in the coming weeks as talks continue. Both leaders have emphasized their commitment to reaching a comprehensive agreement that preserves the benefits of the US-Mexico-Canada Agreement (USMCA) while addressing new trade frictions.
For now, the extension buys time, but the threat of tariffs remains a powerful lever in Washington’s hands. The coming weeks will be critical in determining whether the two neighbors can strike a lasting deal or face renewed economic confrontation.
Sources: Bloomberg Yahoo Finance; Al Jazeera Aljazeera; The Straits Times The Straits Times; Punch NG The Punch.
