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"Sheinbaum continues to run circles around Trump," said one observer.
On the eve of President Donald Trump's dramatic tariff hike on countries around the world, the U.S. leader and his Mexican counterpart on Thursday announced another 90-day extension in trade deal negotiations.
"I have just concluded a telephone conversation with the President of Mexico, Claudia Sheinbaum, which was very successful in that, more and more, we are getting to know and understand each other," Trump wrote on his Truth Social network. "The complexities of a Deal with Mexico are somewhat different than other Nations because of both the problems, and assets, of the Border."
"We have agreed to extend, for a 90 Day period, the exact same Deal as we had for the last short period of time, namely, that Mexico will continue to pay a 25% Fentanyl Tariff, 25% Tariff on Cars, and 50% Tariff on Steel, Aluminum, and Copper," Trump added. "Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many."
Sheinbaum wrote on the social media site X that she "had a very good call with the president of the United States, Donald Trump. We avoided the tariff increase announced for tomorrow and secured 90 days to build a long-term agreement through dialogue."
Trump had threatened to impose a 30% tariff on Mexico, the United States' largest trading partner, on Friday, absent an agreement. However, for the third time, Sheinbaum negotiated her way around his ultimatums. In March, the last time she did so, The Washington Post's Mary Beth Sheridan and Leila Miller dubbed her "the world's leading Trump whisperer."
The aplomb with which Sheinbaum has handled Trump has earned her widespread praise in Mexico and beyond, and has strongly contributed to her 80% approval rating.
"Sheinbaum secures another pause on Trump's tariffs," Mexico City-based journalist José Luis Granados Ceja said on X. "Given yesterday's positive economic news that shows a growing economy, shrinking inequality, and a drop in poverty, the Mexican government is accomplishing extraordinary things in a very unpredictable situation."
Eric Michael Garcia, the Washington, D.C. bureau chief of the British news site The Independent, said on X that "Sheinbaum continues to run circles around Trump for the exact opposite reason the [European Union] conceded to Trump: The success of Trump's presidency relies on the border with Mexico. She can open the spigot anytime he crosses her."
Mexican journalist Jorge Armando Rocha opined on X that "among all nations, Mexico has the best possible trade agreement with the United States."
Some observers warned against Mexican triumphalism or complacency, given Trump's volatility and past threats against Mexico—including talk of an invasion targeting drug cartels. The United States has launched three major invasions and even more minor incursions into Mexico, including an 1846-48 war waged on false pretenses that ended with the U.S. taking more than half of Mexico's territory.
As Trump makes progress in talks with one U.S. neighbor, he's making threats against another. On Wednesday, Trump said that Canadian Prime Minister Mark Carney's decision to conditionally recognize Palestinian statehood "will make it very hard" to complete a trade deal ahead of the president's August 1 deadline to avoid 35% tariffs on all imported Canadian goods not covered by the U.S.-Mexico-Canada Agreement.
White House Press Secretary Karoline Leavitt said Thursday that "at some point this afternoon or later this evening" Trump will order tariffs against dozens of nations with which agreements have not been reached.
Although Trump administration officials promised "90 deals in 90 days," only around half a dozen tariff agreements have been reached, including with the European Union, Japan, South Korea, Indonesia, and the Philippines.
In stark contrast with these agreements, Trump also imposed a 50% tariff on Brazil for prosecuting his friend and fellow far-right insurrection inciter Jair Bolsonaro, widely known as the "Trump of the Tropics" during his tenure as president of the South American giant.
"It is time to align with human rights and international law. It is not a time to bend the knee," said the National Council of Canadian Muslims.
President Donald Trump said Wednesday that Canada's decision to conditionally recognize Palestinian statehood "will make it very hard" to complete a trade deal with the United States' northern neighbor, prompting widespread condemnation of the president's not-so-thinly-veiled threat.
On Wednesday, Canadian Prime Minister Mark Carney announced that Ottawa will grant formal recognition to Palestine at September's United Nations General Assembly (UNGA) in New York if the Palestinian Authority agrees to hold an election in 2026 and implement other democratic reforms.
Asked if he had consulted the U.S. about recognizing Palestine, Carney told reporters that "we make our own independent foreign policy positions."
Carney's announcement came as Israel—which is facing an ongoing genocide case at the International Court of Justice—is under increasing pressure to end its 663-day, U.S.-backed war and siege on Gaza, which has killed or maimed more than 220,000 Palestinians and fueled famine.
The far-right government of Israeli Prime Minster Benjamin Netanyahu, who is wanted by the International Criminal Court for alleged crimes against humanity and war crimes, is also openly pursuing plans to ethnically cleanse Gaza of Palestinians so it can be transformed into what Trump has described as "the Riviera of the Middle East."
Critically, Carney's announcement also came amid trade deal negotiations between U.S. and Canadian officials ahead of Trump's August 1 deadline for 35% tariffs on all imported Canadian goods not covered by the U.S.-Mexico-Canada Agreement.
"More evidence there's no limit to Trump's goal to use tariff bullying to chip away at the sovereignty of other countries... on any issue at all," Canadian economist Jim Stanford said Thursday on the social media site X.
"See also his harsh tariffs on Brazil for prosecuting Trump's close friend and coup schemer Bolsonaro," he added, referring to disgraced former far-right Brazilian President Jair Bolsonaro, who is also known as the "Trump of the Tropics."
What do we even think we are negotiating here? A "deal" that will be subject to constant threats to tear it up based on the arbitrary moment-to-moment mood swings of our trading partner's president? Trump's word is meaningless, why delude ourselves to believe he'd honour any "deal" we'd negotiate?
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— Luke LeBrun (@lukelebrun.ca) July 31, 2025 at 6:27 AM
Dean Baker, a U.S. economist who co-founded the Center for Economic and Policy Research, said on X: "Looks like Trump wants us all to pay higher taxes in support of Israel's mass murder in Gaza. Can someone explain to me how this is 'America First?'"
The National Council of Canadian Muslims (NCCM) said on social media that "Donald Trump has openly endorsed plans to ethnically cleanse and annex Gaza, along with his own outrageous ideas of making Canada the 51st state."
"As Canada strikes out an independent foreign policy by planning to recognize Palestinian statehood, Trump's attempt to suggest that the trade deal is in peril because Canada took a step in the right direction is just another transparent attempt at bullying from a man who changes the goal posts in every trade 'negotiation' in any case," the group continued.
"This is the time to stand strongly in support of Canadian values," NCCM added. "It is time to align with human rights and international law. It is not a time to bend the knee. Canada must push forward by imposing further sanctions on Netanyahu's government, reviewing the Canada-Israel Free Trade Agreement, applying a full two-way arms embargo on the [Israel Defense Forces], and helping those escaping Gaza arrive in Canada."
Although Canada's government insists that it has prohibited arms transfers to Israel since January 2024, research by four groups—World Beyond War, the Palestinian Youth Movement, Canadians for Justice and Peace in the Middle East, and Independent Jewish Voices—revealed this week that there have been at least 47 shipments from Canadian weapons manufacturers to Israeli armaments companies between October 2023 and July 2025.
Trump and members of his administration sought to assuage anxiety over U.S. tariff whiplash by promising bigger, better deals. In April, Peter Navarro, the top White House trade adviser, vowed that Trump would hammer out "90 deals in 90 days." However, 90 days later, the U.S. has finalized deals with around half a dozen nations, with the suspension of Trump's so-called reciprocal tariffs set to expire on August 1. After that, Trump is set to impose tariffs as high as 50% on many countries.
Trump's attacks on longstanding allies have prompted calls for solidarity among Western democracies as they move to recognize Palestine.
"By trying to bully nations out of recognizing Palestine, Trump is making himself the biggest hurdle to a two-state solution and a lasting peace," British Member of Parliament Ed Davey, who leads the center-left Liberal Democrats, said on the social media site Bluesky Thursday. "The U.K. must stand strong with Canada and our allies, we should recognize the Palestinian state right now. No more delays."
Earlier this week, U.K. Prime Minister Keir Starmer said Britain stands poised to formally recognize Palestine at September's UNGA if Israel does not take "substantive" steps to end its war on Gaza, allow aid into the strip, and renounce annexation of the illegally occupied West Bank. Trump signaled that he would not object to U.K. recognition of Palestine.
Around 150 of 193 U.N. member states already recognize Palestine, and this week France and Malta also said they would do so at the UNGA. On Thursday, Portuguese Prime Minister Luís Montenegro said that his government "is considering recognition of the Palestinian state."
There have been increased calls for Canada to find ways to lessen its dependence on the U.S.
"Clearly, August 1 is barely the beginning of this struggle for Canada's heart and soul, never mind a 'deadline,'" Stanford asserted. "Regardless of what happens this week, Canada must charge ahead on this epic mission to rebuild an economy that can survive independently of the U.S."
In a bid to gain some independence from their increasingly unreliable neighbor, Canada and Mexico are working to establish a new land and sea trade corridor that would completely bypass the United States, an initiative projected to cost the U.S. economy at least tens of billions of lost dollars, according to PPR Mundial. In addition to utilizing diverse modes of transport, including rail and maritime connections, the bilateral proposal is expected to incorporate advanced digital technologies including blockchain to manage customs and other formalities.
"While Trump's tariffs continue to cause economic upheaval, corporations are exploiting the chaos and working families are left to foot the bill," said one analyst.
The effects of U.S. President Donald Trump's tariffs are winding their way through the American economy, and a new piece of analysis claims that corporate America is using them as "cover" to further jack up prices.
Progressive advocacy group Groundwork Collaborative issued a new report on Tuesday that uses corporate executives' own words to show how many firms are taking advantage of the tariff situation by using it as an all-purpose justification for price increases. The report found many of these executives' admissions through quarterly earnings calls in which they discussed plans to increase costs even if their inputs were not being significantly affected by the tariffs.
Among others, the report cited a statement made earlier this year by Aaron Jagdfeld, the CEO of power generation products manufacturer Generac Power Systems, who said on an earnings call that "even if we have metals that weren't impacted directly by tariffs, the indirect effect of tariffs is that it gives steel producers and the mills and other fabricators... great cover for increased pricing in some cases."
Another executive quoted in the report was Matthew Stevenson, the CEO of auto parts manufacturer Holley, who said that "in the marketplace we have seen price increases well in excess of what we put out into the market" and added that "we've seen increases as high as 30% or more on some categories from some competitors."
Thomas Robertson, the CFO of footwear company Rocky Brands, flat-out said during an earnings call that his company planned to raise prices even as Trump had backed off his most strident trade-war threats with China.
"We certainly welcome a reduction in the Chinese tariffs, but we'll be announcing a price increase here regardless of any changes of the Chinese tariffs over the next week or two to go into effect in June," he said.
While the report names and shames corporations for price increases, Groundwork Collaborative executive director Lindsay Owens did not absolve Trump of responsibility for the situation.
"President Trump's turbulent trade policy has created a perfect storm of market chaos, giving corporations a golden opportunity to jack up prices, pad profit margins, and fleece Americans simply because they can," said Owens. "While Trump's tariffs continue to cause economic upheaval, corporations are exploiting the chaos and working families are left to foot the bill."
The Groundwork Collaborative report was released on the same day that consumer goods giant Procter & Gamble announced that it would be raising prices on roughly one-quarter of its products due to Trump's tariffs. As reported by CNBC, the company said during its quarterly earnings call that it expects "mid-single-digit price increases" on a wide range of products over the next quarter to help offset what it projects to be a $1 billion hit from the tariffs levied against major trading partners such as Canada and China.
A report by the Tax Foundation on Monday estimated that the Trump tariffs would affect 75% of all food imported from other countries, which would add even more burden to American consumers. What's particularly troubling about the food tariffs, the Tax Foundation explained, is that they will fall on products such as bananas and coffee that are simply not capable of being grown on a mass scale in the United States.
"In 2024, the U.S. imported about $221 billion in food products, 74% of which ($163 billion) faced the Trump tariffs," wrote the Tax Foundation. "While these imports currently face tariff rates ranging from 10% to 30%, they will exceed 30% for some countries if the reciprocal tariffs go into effect on August 1. The top five exporters of food products to the U.S., in order, are Mexico, Canada, the E.U., Brazil, and China, accounting for 62% of total U.S. food imports."