Overview
- Negotiators closed a third bilateral round in Mexico City in late July and agreed to meet again in Washington in September to continue the treaty review.
- The core dispute is Washington's push to require a large share of a vehicle's value to be made specifically in the United States while Mexico insists any tougher rule remain regional; Mexico says it could raise the regional content requirement from 75% up to 90% if the rule stays trilateral.
- U.S. sectoral tariffs remain a major sticking point with a 25% duty on many imported cars and 50% on steel and aluminum that Mexico wants removed before further concessions are made.
- The White House has layered a new global tariff package under Section 301 tied to forced‑labor concerns and the measures faced immediate court challenges after late‑July implementation.
- The dispute matters for people and businesses across North America because about 149,000 U.S. exporters — mostly small and medium firms that sell roughly $182 billion a year to Mexico and Canada — and large automakers are adjusting investment and production plans while uncertainty could slow hiring and supplier growth.