Mexico pursues trade agreement with US after Canada talks collapse

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Mexican President Claudia Sheinbaum expressed optimism regarding trade negotiations with U.S. President Donald Trump as Economy Minister Marcelo Ebrard remained in Washington to discuss the reduction of 50 percent tariffs on Mexican steel and aluminum and 25 percent duties on cars. These talks followed the collapse of negotiations between the U.S. and Canada, which triggered a 50 percent U.S. levy on approximately US$20 billion of Canadian goods and a threat from President Trump to double tariffs on Canadian vehicles and parts. The USMCA trade pact, which includes the U.S., Mexico, and Canada, recently entered a mandatory phase of annual reviews.

Consequences

The breakdown in U.S.-Canada talks resulted in Prime Minister Mark Carney announcing retaliatory tariffs scheduled to take effect on September 8. Meanwhile, Mexico's continued negotiations aim to resolve specific tariff disputes that currently impact its steel, aluminum, and automotive sectors under the USMCA framework.

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