Overview
- The third bilateral round in Mexico City ended in late July with officials calling talks constructive but unresolved and both sides agreeing to meet again in Washington in early September.
- The core dispute is Washington’s push for a U.S.-specific automotive content floor of about 50% versus Mexico’s insistence that any higher requirements count regional content and can rise to as much as 90% regional value content.
- Mexico has tied movement on rules of origin to removal of U.S. Section 232 tariffs on autos, steel and aluminum, while the U.S. administration has given no sign it will lift those duties.
- USTR Jamieson Greer told the U.S. Senate he aims for preliminary accords by the end of 2026 but said the most complex matters—rules of origin, labor and environmental provisions—may require more time and possible Congressional involvement in 2027.
- Business groups and industry warn that prolonged uncertainty risks shifting investment, disrupting integrated supply chains and affecting some 149,033 U.S. exporters that depend on Mexico and Canada for sales and parts supply.