How Mexico's President Negotiated with Trump

A mixture of tact and persuasion: Mexican President Claudia Sheinbaum managed to convince her American counterpart Donald Trump to grant his country a reprieve before increasing customs duties , but without dispelling economic uncertainties.

The two presidents are known for reaching an agreement despite their political differences. On at least three occasions now, the US president has granted Mexico tariff relief, and Donald Trump has called the president a "wonderful woman," a far cry from the sometimes strained relations he has had with some other world leaders.

Once again on Thursday, the Republican announced that he had agreed with her not to immediately raise customs duties on Mexican products, despite threatening to raise the surcharge to 30%. Mexico, the United States' largest trading partner after the European Union as a whole, thus obtained a 90-day reprieve. This amounts to maintaining customs duties at 25% on products entering the United States outside the North American Free Trade Agreement (CUSMA).

The result came after the ninth telephone conversation between the two presidents since Donald Trump's return to power in January, when he threatened to sanction Mexico's exports due to the latter's alleged tolerance of fentanyl trafficking to the United States.

How did she do it? "By keeping a cool head," the president herself explained to reporters on Friday. The 63-year-old physicist and committed left-wing activist added that she avoided "confrontation" with the billionaire.

According to Claudia Sheinbaum, Mexicans "should never bow down," and Donald Trump acknowledged her courage, saying during one of their discussions: "You are tough," according to the New York Times. "Mexico means a lot to the United States (...) they know that," explained Claudia Sheinbaum.

Thanks to the free trade agreement between the United States, Mexico, and Canada, nearly 85% of Mexican exports have been exempt from customs duties. While Mexico has managed to escape the general 30% tariff on its exports for the time being, its automotive sector will be subject to 25% tariffs, even though it had obtained a 15% reduction from Washington in May. Its steel and aluminum sectors, like those of other countries, are subject to 50% tariffs.

The Mexican government, however, considers the recent postponement of the tariffs a victory. "Without any flattery, I can tell you that the way our president is conducting her discussions, her approach, the firmness with which she defends Mexico's interests, and her ability to convince President Trump are very important," said Mexican Economy Minister Marcelo Ebrard, who is leading the negotiations on the tariff surcharges.

Claudia Sheinbaum also appears to have adopted a "give-and-take" approach, deploying thousands of troops to the border with the United States in response to President Trump's concerns about the influx of migrants and drug trafficking. The president insists, for her part, that she has "not given anything away" in negotiations with Donald Trump, and discussions continue between the two neighbors for security agreements to address the problems of fentanyl and drug trafficking. Claudia Sheinbaum also highlighted the possibility of more imports of American products to rebalance the trade balance.

Some fear that the Mexican president is simply trying to buy time. Postponing the implementation of tariffs "doesn't solve the problem of uncertainty; we're back to square one," said a trade expert at the Center for Strategic and International Studies in Washington, interviewed by AFP.