Overview
- The United States declined to accept a 16‑year extension on July 1 and instead activated annual reviews under Article 34.7, keeping the T‑MEC in force through 2036 but subjecting it to yearly negotiation.
- U.S. Trade Representative Jamieson Greer said he has a presidential mandate to pursue tariffs, quotas or other tools to control the U.S. goods deficit with Mexico as part of the review process.
- USTR has formally asked Mexico to accept much stricter auto rules of origin, with reports citing proposals to raise regional content to about 82% and require roughly 50% U.S. content per vehicle.
- Mexico is accelerating market diversification, including an EU interim commercial agreement approved by Brussels on July 13 that now awaits ratification in Mexico, and it is coordinating public and private responses ahead of talks.
- Trade continues mostly preferential for now, with U.S. Commerce data showing about 79.3% of Mexican exports entered duty‑free in May, but businesses warn the negotiations could raise costs, shift supply chains and affect jobs in autos, steel and agriculture.