U.S. and Mexico Agree to Extend Trade Negotiations
President Donald Trump announced that the United States will give Mexico an additional 90 days to complete negotiations on a long-term trade agreement. The extension allows existing tariffs to remain in place while talks continue.
Under the current arrangement:
- 25% tariff on fentanyl
- 25% tariff on cars
- 50% tariff on steel, aluminum, and copper
Mexico also agreed to remove several non-tariff trade barriers during this period. Trump said both nations will work toward finalizing a comprehensive deal before the new deadline, though he suggested discussions could extend beyond that if necessary.
Global Trade Implications
The extension has sparked speculation that other countries facing higher import duties may receive similar pauses. Just weeks earlier, the United States reached an agreement with the European Union that set a 15% baseline tariff rate on exports beginning August 1.
Canada, meanwhile, is bracing for continued trade pressure as it moves forward with its plan to recognize Palestinian statehood, which U.S. officials have indicated could complicate negotiations.
Senate Report Criticizes Federal Spending
In separate domestic developments, Senate Democrats released a report criticizing the Department of Government Efficiency (DOGE), an initiative under the Trump administration. The report claimed the program:
- Paid approximately 200,000 federal employees not to work for months
- Fired or put over 100,000 workers on administrative leave
- Incurred an estimated $21.7 billion in costs
The investigation cited delays in grant distribution and destruction of unused food and medical supplies as key contributors to waste.
Developments in Israel and Gaza
In foreign policy, U.S. envoy Steve Witkoff visited Israel amid a worsening humanitarian crisis in Gaza. The visit follows a failed Senate vote to block U.S. arms sales to Israel.
- 12 additional Democrats supported halting sales, citing humanitarian concerns.
- Senate Minority Leader Chuck Schumer opposed the measure, stating U.S. support for Israel remains focused on the Israeli people rather than its current government.
President Trump reiterated on social media that the fastest path to resolving the crisis is for Hamas to release hostages and surrender.
About the Author
