In brief
Mexico is pressing forward with U.S. negotiations on the U.S.–Mexico–Canada Agreement, focusing on tariff reductions for steel, aluminum, and automotive products while having resolved many non‑tariff barriers. President Claudia Sheinbaum said the talks would continue regardless of the U.S. election outcome, and Mexico’s Economy Minister Marcelo Ebrard is in The Hague with U.S. officials, including Commerce Secretary Howard Lutnick and Ambassador Ronald Johnson. The discussions are part of the periodic review that began on July 1, under which the U.S. opted for annual reviews rather than an automatic extension.
Mexico’s President Claudia Sheinbaum announced on Wednesday that her government is advancing trade talks with Washington to resolve issues under the U.S.–Mexico–Canada Agreement (USMCA) before the U.S. mid‑term elections on November 3.
In a daily press conference, Sheinbaum noted that Economy Minister Marcelo Ebrard is continuing negotiations with U.S. officials, including Commerce Secretary Howard Lutnick and U.S. Ambassador to Mexico Ronald Johnson. Electorally scheduled mid‑term elections in the United States, which decide the composition of the House of Representatives and the Senate, have added urgency to the bilateral dialogue.
While progress has been made on a number of items, the talks have not yet produced an agreement on Mexico’s priority issues. These include the reduction of tariffs applied under Section 232 of U.S. trade law on steel, aluminum and the automotive industry. USMCA non‑tariff barriers that Washington identified have already been addressed, the president said.
During the conference, Sheinbaum emphasized that Mexico would continue working with the United States irrespective of the election outcome, stating, “we are going to continue working with the United States. That work is not interrupted.”
She added a cautionary note in response to recent remarks by former U.S. President Donald Trump regarding the possibility of finalizing a trade agreement. Sheinbaum urged “great patience and composure” throughout the talks.
“Great patience and composure,” Sheinbaum urged, highlighting the need for measured progress.
The U.S. and Mexico are currently seeking a temporary bilateral deal while negotiations with Canada remain tangled over the potential renewal of the trilateral USMCA pact. The broader effort to renew the U.S.–Mexico–Canada Agreement includes annual reviews that began on July 1 following the United States’ decision not to automatically extend the agreement.
The context of these negotiations is set against a backdrop of heightened trade scrutiny and political change in both countries. The talks aim to prevent abrupt tariff changes that could impact supply chains and industrial partners across North America.
Mexico’s approach to the negotiations underscores a focus on areas of common ground that can strengthen both nations. The government has maintained that the discussions have proceeded without any surrender of sovereignty on its part, a stance that has been reiterated in public statements and diplomatic exchanges.
At the heart of the discussion is the issue of tariffs on steel and aluminum, which the U.S. has sought to lower as part of the USMCA’s trade adjustments. Mexico’s ongoing dialogue—led by Economy Minister Marcelo Ebrard—aims to reduce these tariffs to levels that facilitate smoother cross‑border trade and strengthen economic interdependence.
Meanwhile, the automotive sector, a significant part of Mexico’s export economy, remains under negotiation for tariff reductions. The United States has pushed for lower tariffs on automotive products to level the playing field for domestic producers as well as for its allies in Canada and Mexico.
In addition to the tariff issues, earlier negotiations have tackled numerous non‑tariff barriers. Mexico’s cabinet spokesperson highlighted that most of these obstacles were already addressed, signaling that the remaining contentious points are primarily tariff‑based.
As the United States heads into its mid‑term elections, the need for a stable trade relationship takes on additional importance. Many market participants regard the continuity of economic cooperation between Washington and Mexico as a key factor in ensuring steady trade flows across the region, especially in the face of potential policy shifts following the elections.
Mexico’s commitment to maintaining dialogue regardless of electoral outcomes underscores the larger strategic imperative to preserve trade stability. The government’s statements suggest that even if new U.S. leadership emerges post‑election, the talks will persist to safeguard mutual economic interests.
While a final agreement has yet to be reached, the process reflects broader trends of nations using bilateral arrangements to navigate complex multilateral trade dynamics. The temporary bilateral arrangement being sought by Mexico and the United States is seen as a stopgap that could enable continuity while the wider trilateral USMCA renewal remains unresolved, particularly as Canada’s negotiations proceed in parallel.
The ongoing discussions are expected to evolve in the days leading up to the U.S. mid‑term elections, with continued attention on the tariff reductions for steel, aluminum, and automotive products. Analysts indicate that the resolution of these items could set the tone for broader trade policy discussions in the post‑election period.
