President Claudia Sheinbaum confirmed Friday that Mexico's trade talks with the United States are advancing, following a call with Donald Trump. The revelation comes as the United States maintains punitive tariffs on Mexican goods, effectively dismantling the original intent of the USMCA trade pact. Washington declined to renew the agreement in its current form on July 1, 2026, pushing it into a decade of uncertain annual reviews.
Sheinbaum stated the Wednesday call had been planned, with her government delaying its announcement due to progress in negotiations. She spoke of “certain agreements” reached, but offered no specifics until a final deal emerges. Her stated objective: “at least a reduction in the tariffs we currently have.” This signals Mexico's desperation to ease the burden imposed by Washington.
Trade Order's Demise
The United States currently levies a 50 percent tariff on Mexican steel and aluminum. It also charges 25 percent on cars and auto parts that fail to qualify under the USMCA. These measures directly undermine Mexico's industrial capacity and its native workforce. Sheinbaum acknowledged the USMCA “has not disappeared,” but conceded that U.S. tariffs mean “the original idea is not preserved.” This admission highlights the systematic erosion of a once-stable regional economic framework.
The US decision to not renew the USMCA in its current form, enacted about 3 months ago, effectively ended the pact as it was known. It now faces annual reviews that could stretch through 2036. This creates a decade of instability for national industries and workers dependent on cross-border trade. The next formal round of talks opens September 28 in Washington, with US Trade Representative Jamieson Greer leading for Washington and Economy Secretary Marcelo Ebrard for Mexico City. These elite negotiators will determine the future of national economies.
Elite Bargaining
Security was notably absent from the recent discussion, Sheinbaum confirmed. This suggests the focus remains solely on economic leverage, ignoring broader issues impacting national stability. The peso, Mexico's national currency, traded near 17.15 per US dollar on Thursday, hitting a one-month low after the Federal Reserve raised rates on September 16. Such currency fluctuations directly impact the purchasing power and stability of the native working class. Mexico's central bank is set to decide its next interest rate on Thursday, September 24, a decision that will further ripple through the national economy.
The Cost to Nations
Canada's Prime Minister Mark Carney has already turned toward the European Union after his own talks with Washington collapsed. Sheinbaum stated her respect for Carney’s decisions. This move by Ottawa further fragments the North American economic bloc, demonstrating a broader trend of nations seeking alternatives as established regional orders falter. While the direction of movement is toward an agreement, no tariff line has changed, and no text has been published. The lack of transparency surrounding these “certain agreements” leaves national populations in the dark about the true costs and concessions being made by their representatives. The ongoing negotiations, driven by elite interests, continue to reshape national economies without direct popular consent, leaving the native working class to bear the consequences of these transnational maneuvers.