Mexico says talks with U.S. ongoing ahead of tariff pause deadline

Mexico is holding talks with the U.S. government on trade policy before a deadline expires in a week for a pause on tariffs on Canadian and Mexican goods, Mexican President Claudia Sheinbaum said on Tuesday, in a push to reach a new deal.

Sheinbaum said she expected to reach an agreement that could head off a potential trade war with the U.S., its top trade partner, even after President Donald Trump said on Monday that tariffs on Mexican and Canadian goods were "on time and on schedule."

Contingency plans, including her so-called Plan B of retaliatory tariffs, remain in place in case Trump proceeds with his threat of across-the-board duties on Mexican exports to the U.S., she said at a regular press conference.

"This deal has to be finalized this week," said Sheinbaum. "We're expecting to reach a deal with the United States."

Mexico's trade dependent economy sends around 80% of its exports to the United States.