Mexico pushes U.S. for lower auto and steel tariffs in USMCA talks

Mexico’s government has intensified its USMCA negotiations, demanding a cut to the 25% tariff the Trump administration placed on cars built in Mexico and exported beyond the bloc, as well as more leeway on steel duties. Marcelo Ebrard, the economy secretary, presented a study comparing the 15% tariffs on vehicles from Japan, South Korea, Germany and Morocco with the higher rate on Mexican cars, arguing that Mexico imports more U.S. parts.

The United States, meanwhile, is considering tightening the rules of origin so that only vehicles with 50% U.S. components would qualify for preferential treatment, a shift from the current 75% North American content rule. Mexico also urged Washington to suspend any new tariffs during the review, which will include a September meeting. Current U.S. Section 232 steel tariffs stand at 50% for many products, a level Mexico says lacks commercial justification given the U.S. trade surplus in steel. The outcome will affect the flow of the roughly $1.5 trillion in annual trade among the three countries and could influence future foreign investment in Mexico.