[Stay on top of transportation news: Get TTNews in your inbox.]
Mexico ‘optimistic’ on U.S. trade deal after Canada talks end
Goal is to lower 50% U.S. tariffs on Mexican steel and aluminum, and 25% duties on cars
Tractor-trailers wait in line at the Ysleta-Zaragoza International Bridge port of entry, on the U.S.-Mexico border in Juarez, Mexico. (David Peinado/Bloomberg)
Key Takeaways:
- President Donald Trump said Aug. 24 he will raise tariffs on Canadian vehicles, parts and steel to 50% starting Jan. 1.
- The proposal could disrupt a deeply integrated U.S.-Canada auto supply chain and its treatment of U.S.-made vehicle content remains unclear.
- Canada plans retaliatory tariffs Sept. 8, and both sides say trade talks collapsed after disagreements over tariff reductions and U.S. demands.
Mexican President Claudia Sheinbaum expressed optimism she can reach a trade deal with Donald Trump as her chief negotiator leads talks in Washington, just after negotiations between the U.S. and Canada collapsed.
“As President Trump said, we hope to reach an agreement with the .U.S,” she told reporters on Monday after being asked about the escalating U.S.-Canada impasse. “I’m optimistic an agreement can be reached.”
Economy Minister Marcelo Ebrard, Sheinbaum’s top trade negotiator, will remain in Washington for several days as he seeks to lower 50% U.S. tariffs on Mexican steel and aluminum, and 25% duties on automobiles.
The 6-year-old USMCA trade pact includes the U.S., Mexico and Canada. Last month, it formally entered a phase of annual reviews.
Washington’s negotiations with Ottawa fell apart in recent days, prompting Trump to say he’ll double tariffs on Canadian automobiles and parts starting next year. The breakdown also triggered a 50% U.S. levy on about $20 billion of Canadian goods, while Prime Minister Mark Carney announced retaliatory tariffs to take effect on Sept. 8.
Like with Mexico, the current import duty on Canadian cars is 25% and applied only to the vehicles’ non-U.S. content. Imported steel also faces 50% levies.
