REYNOSA — The clock is ticking for Mexico to reach a new trade agreement with the United States before Oct. 29, when a 90-day grace period expires and steep new tariffs could take effect.

Under the extension negotiated in late July between President Donald Trump and Mexican President Claudia Sheinbaum, existing tariffs — 25% on vehicles and fentanyl-related goods and 50% on metals — were kept in place while both sides continue to negotiate. 

If no deal is reached by Oct. 29, those rates could rise to 30%, raising costs for manufacturers along one of North America’s busiest industrial corridors.

Why it matters for the RGV

The Rio Grande Valley’s industrial economy is directly tied to Mexico’s manufacturing base.