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U.S. Opens Bilateral USMCA Talks With Mexico While Tariffs Stay in Place

Washington is using tariffs alongside bilateral talks to press for higher U.S. content and tighter rules, raising the chance the USMCA will move to annual reviews.

Mexico President Claudia Sheinbaum meeting with US trade representatives in April of 2026.
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Steve Verheul made plenty of headlines in 2017 and 2018 as he wrangled with U.S. and Mexican representatives to forge a fair trilateral deal.
U.S. Trade Representative Jamieson Greer at the White House in Washington, D.C., in April. The U.S., Mexico and Canada must decide on whether to extend the USMCA agreement or move to a period of annual reviews for 10 years.

Overview

  • The U.S. Trade Representative has begun three bilateral negotiating rounds with Mexico led by Deputy USTR Jeffrey Goettman, with sessions scheduled in Mexico City and Washington this month and next.
  • Canada was not included in the initial talks and USTR Jamieson Greer said there are significant differences with Ottawa, making a trilateral 16-year extension by the July 1 deadline unlikely.
  • Greer confirmed that U.S. tariffs on Canadian and Mexican imports will remain in place and are being used as leverage to secure changes to the agreement.
  • U.S. negotiators are pressing for stricter rules of origin and higher U.S. content—especially for autos—and want coordination on external tariffs to limit Chinese inputs into regional supply chains.
  • If the three parties do not agree to extend the deal, the USMCA will enter mandatory annual reviews that could stretch talks for years and leave manufacturers, auto workers, and supply chains with prolonged uncertainty.