Mexico, US Extend Trade Talks Ahead of Nov. 1

Mexican President Claudia Sheinbaum said she and U.S. President Donald Trump agreed after a weekend call to extend bilateral trade talks for a few more weeks to resolve 54 outstanding non-tariff barriers ahead of a Nov. 1 deadline. The extension preserves the July pause that had averted an immediate increase in U.S. punitive tariffs—which had been slated to rise toward 30% on some Mexican goods from the current 25%—though existing duties, including 25% on certain cars and higher levies on steel, aluminum and copper, remain in place. Most Mexican goods produced under the USMCA continue to enter the U.S. duty-free, and Mexico said it has noted progress on EV, semiconductor, satellite, drone and AI projects tied to the talks. Sheinbaum expressed optimism that the issues are nearing resolution, and Mexico’s peso strengthened after her remarks. The extension contrasts with President Trump’s decision to end trade talks with Canada, underscoring divergent U.S. approaches to its North American partners.