US, Mexico Near Trade Deal After Leaders' Call
US, Mexico Near Trade Deal After Leaders' Call
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Key Points
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The proposed deal would address U.S. duties of 50% on Mexican steel and aluminum, 25% on cars and auto parts, and tariffs on goods that do not meet USMCA rules of origin.
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U.S. Trade Representative Jamieson Greer and Mexican Economy Secretary Marcelo Ebrard are leading the negotiations; their most recent formal bilateral round took place in Mexico City in July.
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Sheinbaum confirmed the phone call at her Sept. 17 morning press conference, where she also responded to a U.S. government report concerning drug trafficking.
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The bilateral discussions followed the collapse of U.S.-Canada trade negotiations late the previous month, adding broader North American context to the Mexico talks.
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Mexico’s peso was trading near 17.15 per U.S. dollar, close to a one-month low, after the Federal Reserve raised interest rates on Sept. 16.
President Trump and Mexican President Claudia Sheinbaum spoke by phone as the two countries edge closer to a trade deal Rio Times Online. Sheinbaum said Free Malaysia Today the talks on reducing tariffs are "advancing," marking their 22nd call together. However, one person familiar with the conversation called it "so-so" after new disputes surfaced.
The negotiations focus on steep U.S. tariffs: 50% on Mexican steel and aluminum, 25% on cars and auto parts, and penalties on goods that break USMCA trade rules El País. A formal negotiation round is set for September 28–29 in Washington, one week later than planned.
Why the Tariffs Matter So Much
The U.S. wants Mexico to agree to stricter rules on where auto parts come from and tougher labor standards Mexican City News. These issues hit Mexico's biggest export industries hard. Steel, aluminum, and cars account for billions in annual trade between the countries.
The tariffs are Trump's leverage to push Mexico into accepting his demands before the USMCA agreement gets reviewed in 2026. Without a deal, Mexican exporters face crippling costs that get passed to buyers.
Sheinbaum Stays Optimistic Despite Mixed Signals
At her September 17 press conference, Sheinbaum confirmed the Trump call and said "certain agreements" were reached Rio Times Online. She projected confidence that a deal is within reach. Yet the "so-so" description from an insider suggests real obstacles remain under the surface.
Agriculture, labor rules, and economic security are also on the table. Trump has said the countries are close to agreement, but new issues emerging in talks show this is far from done.
Mexico's Currency Weakens Amid Trade Uncertainty
Mexico's peso dropped to near 17.15 per U.S. dollar, sitting close to a one-month low. The Federal Reserve raised interest rates on September 16, pushing investors to seek safer assets. Trade talks add another layer of uncertainty for Mexican markets.
A failed deal or prolonged tariff war would hammer Mexico's economy further. Peso weakness makes imports more expensive for Mexican families and businesses already facing higher costs.
U.S. Trade Team Leads Push for Tougher Rules
U.S. Trade Representative Jamieson Greer and Mexican Economy Secretary Marcelo Ebrard are steering the negotiations. Their last formal meeting happened in Mexico City in July. The September 28–29 round in Washington comes after U.S.-Canada trade talks collapsed late last month.
That failure looms over Mexico talks. Trump is pushing harder with Mexico, signaling he wants a North American trade victory before the 2026 USMCA review.
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