President
Donald Trump announced via Truth Social that he is delaying the imposition of new tariffs on Mexico just hours before a self-imposed August 1 deadline, citing a “very successful” call with Mexican President
Claudia Sheinbaum.
The decision marks a notable retreat from Trump’s previous pledge not to extend negotiations without a formal agreement—yet another instance fueling the emerging Wall Street adage, “
TACO,” shorthand for “Trump Always Chickens Out.”
Earlier this month, Trump warned there would be “no extensions, no excuses,” vowing to impose steep new tariffs on Mexican goods if a new trade deal was not finalized by August 1. “We’ve made too many empty threats in the past,” he told supporters at a July 12 rally in Phoenix. “Not this time.”
Yet on the eve of the deadline in a Thursday morning
post, Trump announced a 90-day extension under existing terms — deferring punitive new tariffs while negotiations continue. Under the rolled-over agreement, Mexico will continue paying a 25% tariff on most exports into the United States, and a 50% levy on industrial metals.
