In brief
President Claudia Sheinbaum announced that Mexico’s trade talks with the United States are progressing ahead of the U.S. midterm elections. Negotiations aim to cut tariffs under US trade law Section 232 and address non-tariff barriers, while Mexico affirms it will work with the U.S. regardless of the election outcome. No agreement has yet been reached on the priority tariff issues, and the talks are part of the USMCA periodic review process that will last a decade.
Mexico’s President Claudia Sheinbaum announced on Tuesday that her government was advancing trade talks with Washington to resolve issues under the United States‑Mexico‑Canada Agreement before the U.S. mid‑term elections on November 3.
Sheinbaum called Economy Minister Marcelo Ebrard and U.S. officials—including Commerce Secretary Howard Lutnick and Ambassador Ronald Johnson—engaged in discussions that focus on reducing the tariffs applied by the United States under Section 232 of its trade law, which include steel, aluminium and automotive products. She added that while “important progress has been made,” no agreement has yet been reached on those priority issues.
She further explained that, regardless of the election outcome, Mexico will continue to work with the United States; the negotiations have proceeded “without any surrender of sovereignty,” and the emphasis remains on common ground that can strengthen both economies.
We are going to continue working with the United States. That work is not interrupted.
A former U.S. president, Donald Trump, had recently remarked on the possibility of finalizing an agreement before the elections. Sheinbaum urged “great patience and composure” to be maintained in the negotiations, framing the talks as a strategic process rather than a campaign issue.
Focusing on Steel, Aluminium and Auto Tariffs
The President identified the reduction of tariffs under Section 232 as a priority for Mexico, while acknowledging that a formal agreement has yet to be reached. The talks center on tariff schedules that affect Mexico’s steel and automotive sectors, which are important components of its export economy.
Sheinbaum said that negotiations also aim to revise tariff placements for aluminium imports, ensuring that Mexican producers can maintain competitive pricing in both domestic and regional markets.
While these tariff discussions remain unresolved, the Mexican side emphasized that Mexico has not compromised its sovereignty in pursuit of a mutually beneficial outcome.
Resolution of Non‑Tariff Barriers
Sheinbaum reported that most non‑tariff barriers identified by Washington have already been resolved, allowing for smoother trans‑border movement of goods and preserving the integrity of the supply chain between the two countries.
The resolution of such barriers is part of the broader USMCA framework, which has historically sought to reduce trade impediments through detailed legislative and regulatory cooperation.
USMCA Periodic Review Process
The trade discussions are linked to the USMCA periodic review that began on July 1, after the United States opted not to automatically extend the agreement but instead proposed annual reviews over the next decade. The agreement’s renewal mechanism involves a joint evaluation that keeps both countries aligned on trade policies.
Under this review process, the United States and Mexico are set to hold annual inquiries into the agreement’s implementation, ensuring continuous dialogue and adjustment as trade dynamics evolve.
Impact of U.S. Mid‑term Elections
The mid‑term elections on November 3 will decide the composition of the U.S. House of Representatives and the Senate. The outcome will shape the legislative agenda for the duration of the President’s term, influencing trade policy, tariff decisions and future negotiations.
Mexico’s commitment to maintain cooperative trade relations regardless of the election results underscores the importance of stable economic ties for both federal governments, citizens and businesses that rely on cross‑border commerce.
While the parties have made “important progress,” the key tariff reductions remain unresolved. Both sides expect to resume negotiations promptly once the next round of talks can be scheduled.
Mexico’s political leadership has indicated that its cooperative stance will persist throughout and beyond the election cycle, highlighting a dedication to shared economic interests over partisan politics.
