Donald Trump’s auto tariffs on Mexico are “unsustainable”, and US carmakers are ultimately losing out too, the head of Mexico’s auto association has warned. Mexico was mostly relieved on Thursday when Trump announced that goods exported under the US, Mexico, Canada trade deal (USMCA) would remain tariff-free for 90 days while talks continue.

He explained that he and Sheinbaum had agreed to keep US tariffs at their current rates for a 90-day period. Mexico had been one day away from seeing a tariff increase on August 1. Earlier this month, on July 11, Trump had threatened on Truth Social to raise tariffs on Mexican imports to 30 percent.

President Donald Trump announced on Thursday he’s extending the existing tariffs with Mexico, America’s largest trading partner, and he will pause higher tariffs that were set to go into effect Friday.