President Claudia Sheinbaum confirmed Friday that Mexico's pushing for tariff relief in ongoing trade negotiations with the United States, revealing that she'd spoken with Donald Trump three days ago about reducing duties that have hit Mexican workers and manufacturers hard since Washington let the USMCA trade pact lapse in its original form.
Sheinbaum said the Wednesday call had been planned in advance and that her government hadn't announced it earlier because of progress in the talks. "Certain agreements" were reached, she said, though she gave no details until a final deal emerges. The objective, she made clear, was "at least a reduction in the tariffs we currently have."
Tariffs Hammering Key Industries
The United States currently charges 50 percent on Mexican steel and aluminum and 25 percent on cars and auto parts that don't qualify under the USMCA, the trade pact between the United States, Mexico and Canada. Those tariffs have squeezed manufacturers on both sides of the border, threatening jobs in industries where supply chains cross the Rio Grande multiple times before a finished product reaches consumers.
Sheinbaum said the USMCA "has not disappeared," but that U.S. tariffs mean "the original idea is not preserved." The United States declined to renew the agreement in its current form on July 1, 2026, moving it into annual reviews that can run through 2036. That shift created uncertainty for businesses that had invested billions based on the expectation of stable, predictable trade rules.
Talks Resume in Washington
The next formal round opens on September 28 in Washington. US Trade Representative Jamieson Greer leads for Washington, and Economy Secretary Marcelo Ebrard leads for Mexico City. Sheinbaum said security wasn't discussed this time, keeping the focus squarely on economic issues.
The report said the talks were moving toward a final deal aimed at reducing U.S. tariffs across several sectors. But no tariff line has changed and neither side has published any text, leaving workers and businesses waiting for concrete relief.
Regional Fractures Deepen
Sheinbaum also said she respects Prime Minister Mark Carney's decisions, a reference to Ottawa's turn toward the European Union after its own talks with Washington broke down. That diplomatic nod underscored how U.S. trade policy has fractured North American cooperation, pushing Canada toward other partners and leaving Mexico to negotiate alone.
The peso traded near 17.15 per US dollar on Thursday, close to a one-month low, after the Federal Reserve raised rates on September 16. Mexico's central bank decides its next interest rate on Thursday, September 24, as policymakers navigate economic headwinds created partly by trade uncertainty.
Why This Matters:
These tariffs don't just show up as numbers on customs forms. They hit paychecks in Monterrey and Michigan alike, raising costs for manufacturers who've built integrated supply chains over decades of cooperation. The 50 percent duty on steel and aluminum and 25 percent on autos threatens jobs in sectors where Mexican and American workers depend on each other's output. When trade agreements become subject to annual political reviews instead of stable long-term frameworks, businesses can't plan investments and workers can't count on stable employment. Canada's pivot toward Europe shows what happens when the world's largest economy treats its neighbors as adversaries rather than partners. If Mexico secures tariff relief, it'll provide breathing room for industries that employ millions. If talks fail, working families on both sides of the border will pay the price for a fractured relationship that once promised shared prosperity.