Overview
- Mexican officials said this week that technical talks with U.S. counterparts are active and have produced significant progress on non-tariff barriers and T‑MEC review issues.
- The single biggest unresolved issue are U.S. tariffs imposed under Section 232, which include roughly 50 percent levies on steel and aluminum and significant duties on some autos.
- Mexico is pressing for sizable tariff cuts on cars, steel and aluminum while U.S. officials have shown less appetite for rapid rollbacks because the measures now generate substantial revenue for the U.S. government.
- Claudia Sheinbaum and President Trump must each approve any final package, and Mexican ministers say negotiations may continue after the November 3 U.S. elections if no deal is reached beforehand.
- If talks stall, exporters and investors in Mexico face continued uncertainty over costs and supply chains, and the annualized T‑MEC review process will become the main forum to seek longer term rules of origin and market access fixes.