TACO? Trump Announces He’s Backing Off August 1 Tariff Deadline With Mexico

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.

Trump also claimed Mexico has agreed to eliminate “Non Tariff Trade Barriers,” though no specifics were provided. The post listed a who’s who of Trumpworld present during the call, including Vice President JD Vance, Treasury Secretary Scott Bessent, and Commerce Secretary Howard Lutnick — signaling the high-stakes of the negotiations.

Trump posted:

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. 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. Additionally, Mexico has agreed to immediately terminate its Non Tariff Trade Barriers, of which there were many. We will be talking to Mexico over the next 90 Days with the goal of signing a Trade Deal somewhere within the 90 Day period of time, or longer. Present at the meeting were Vice President JD Vance, Secretary of Treasury Scott Bessent, Secretary of State Marco Rubio, Secretary of Commerce Howard Lutnick, United States Trade Representative and Ambassador Jamieson Greer, Chief of Staff Susie Wiles, and Deputy Chief of Staff for Policy, and United States Homeland Security Advisor, Stephen Miller. There will be continued cooperation on the Border as it relates to all aspects of Security, including Drugs, Drug Distribution, and Illegal Immigration into the United States. Thank you for your attention to this matter!

The decision to delay — rather than deal or punish — adds fuel to the TACO moniker reportedly gaining traction in financial circles. Traders have pointed to a pattern: Trump threatening harsh economic action, only to walk it back at the eleventh hour.

From threatened tariffs on French wine and German cars to an earlier Mexico standoff in 2019, critics say the pattern undercuts the perception of strength Trump cultivates. The fact that Mexico is home to delicious tacos makes the metaphor irresistible, even if it’s a little “on the nose.”

While the administration emphasized “continued cooperation” on border issues and security, the abrupt pause suggests that, once again, Trump’s bark may be louder than his bite.