Thu Jul 31 23:47:37 UTC 2025: Okay, here’s a summary of the text and a news article rewrite, formatted for an Indian audience based on the provided publications:

**Summary:**

President Trump granted Mexico a 90-day reprieve from a 30% tariff on most non-automotive and non-metal goods complying with USMCA after a call with President Sheinbaum. However, 50% tariffs on Mexican steel, aluminum, and copper and 25% tariffs on Mexican autos, as well as tariffs on non-USMCA-compliant goods related to fentanyl, remain. Trump also imposed a 50% tariff on Brazil, excluding key sectors, due to the Bolsonaro prosecution. These tariffs are being challenged in court, with judges questioning Trump’s use of emergency powers to justify them. The US is also nearing a trade deal with China, facing an August 12th deadline.

**News Article:**

**The Hindu: Global Trade Tensions Simmer as Trump Grants Mexico Reprieve, Eyes China Deal**

**New Delhi, August 1, 2025:** The global trade landscape remains turbulent as U.S. President Donald Trump extended a temporary reprieve to Mexico from impending tariffs, while simultaneously escalating trade pressure on other nations. The move comes as India closely monitors the evolving dynamics and their potential impact on its own trade relationships.

Following a phone conversation with Mexican President Claudia Sheinbaum, President Trump granted Mexico a 90-day extension, averting a 30% tariff on most Mexican non-automotive and non-metal goods that comply with the USMCA trade agreement. This provides temporary relief for Mexican exporters. “We avoided the tariff increase,” President Sheinbaum wrote on X.

However, the US will continue to levy a 50% tariff on Mexican steel, aluminum, and copper, and a 25% tariff on Mexican autos as well as tariffs on goods related to fentanyl.

In a move likely to raise eyebrows in Brasilia, Trump has also slapped a 50% tariff on Brazil, citing concerns over the prosecution of his ally, former President Jair Bolsonaro. Certain key sectors, including aircraft, energy, and orange juice, have been excluded from the increased levies.

These protectionist measures are facing legal challenges within the U.S., with federal judges questioning the legality of Trump’s use of emergency powers to justify sweeping tariffs.

Amidst the tensions, there are hints of potential progress with China. U.S. Treasury Secretary Scott Bessent indicated that a trade deal with China is within reach, although final approval from President Trump is still required. China faces an August 12 deadline to reach a durable agreement with the Trump administration.

For India, these developments underscore the volatile nature of the global trade environment and the need for a proactive approach to safeguard its economic interests. Trade analysts in India are closely analyzing the impact of these tariff changes on specific sectors, particularly those competing with Mexico and Brazil in the U.S. market. The outcome of the U.S.-China trade negotiations will also be a crucial factor in shaping the global economic outlook for the coming months.

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