In brief
Mexico is pushing forward USMCA trade talks to address tariffs on steel, aluminum, and automotive products ahead of the U.S. mid‑term elections. President Claudia Sheinbaum said negotiations continue with U.S. officials, and most non‑tariff barriers have been cleared, but no agreement on priority tariff cuts has yet been reached. Uncertainties remain over how the election outcome and lingering tariff levels will shape final terms.
Mexico’s president, Claudia Sheinbaum, confirmed that her government is advancing talks with Washington to settle outstanding issues under the United States‑Mexico‑Canada Agreement before the United States mid‑term elections on November 3.
Sheinbaum told reporters at Mexico City’s daily press conference that Economy Minister Marcelo Ebrard is engaged in continued dialogue with U.S. officials, including Commerce Secretary Howard Lutnick and Ambassador Ronald Johnson. She stressed that negotiations have progressed without any surrender of sovereignty and are focused on areas of common ground that could strengthen both nations.
"Great patience and composure," Sheinbaum said, referencing President Donald Trump’s recent remarks on the possibility of finalizing an agreement.
Said the Mexican president, the focus remains on reducing tariffs applied under Section 232 of U.S. trade law on steel, aluminum and the automotive industry. While the negotiations have addressed many non‑tariff barriers, no agreement has yet been reached on these priority issues.
According to Xinhua, the periodic review of the USMCA began on July 1 after the United States opted not to extend the agreement automatically. Instead, Congress and the administration will pursue annual reviews over the coming decade, adding procedural uncertainty to the trade talks.
Reuters reported that Mexico continues its push to secure significant tariff reductions, noting that negotiations with the United States have remained active even as US‑Canada talks collapsed earlier this month. The U.S.‑Mexico talks are now the sole front for work under the USMCA’s review framework.
Sheinbaum reiterated that Mexico will keep cooperating with the United States regardless of the election outcome. “We are going to continue working with the United States. That work is not interrupted,” she said, framing the relationship as resilient across possible political shifts.
The U.S. mid‑term elections will elect the House of Representatives and the Senate, potentially reshaping future trade policy. Brazil‑style impetus for tariff discussions suggests that both sides are simultaneously assessing the feasibility of reaching a binding framework before the draft terms are finalized.
Investing.com echoed the sentiment that trade talks are ongoing, noting that both sides are gauging whether the current tariff structure is sustainable or requires substantive cuts to maintain equilibrium in the trading corridors.
What remains unresolved are the final tariff levels for steel, aluminum, and auto components, the timetable for implementation after the elections, and how potential shifts in the U.S. congressional balance might influence the appetite for concessions. Each party’s assessment of feasibility continues to monitor economic data and political cost.
These uncertainties—whether the new tariffs can be negotiated in time, how election results may alter bargaining power, and the precise scope of tariff cutbacks—continue to define the trajectory of the U.S.‑Mexico trade negotiations as they move toward a final settlement.
