Overview
- The Wall Street Journal reported on Friday that Commerce Secretary Howard Lutnick opposed reducing U.S. tariffs on Mexican autos, steel and aluminum, and that his stance has slowed progress in bilateral talks.
- Mexican officials and a Commerce Department spokesperson say negotiations are continuing, and Secretary of Economy Marcelo Ebrard has publicly expressed confidence that tariff cuts could materialize in weeks or months and that Lutnick has not opposed reductions in his direct conversations.
- Mexico has proposed lowering the U.S. auto tariff to about 15 percent and creating a mechanism to discount the value of North American-made components when calculating duties, while also taking domestic trade steps such as new tariffs and import rules to protect its auto supply chain.
- The disputed tariffs were imposed under Section 232 and include roughly 25 percent on certain vehicles and about 50 percent on steel and aluminum; U.S. metal producers have warned that cuts could cost American jobs and industry groups have pressured officials to keep protections.
- Talks continue under U.S. trade teams led by the U.S. Trade Representative and Jamieson Greer, and the outcome will affect automakers, metal suppliers and the upcoming T-MEC review by influencing investment, production choices and cross‑border supply chains.