Mexico to Push Steel, Auto Tariff Cuts in USMCA Talks
Tariffs, according to trade analysts, can distort competition and reduce efficiency within these highly integrated networks.
SEATTLE (Scrap Monster): Mexico will push to eliminate tariffs on steel, aluminum, and vehicles during the upcoming review of the United States–Mexico–Canada Agreement (USMCA), Mexican President Claudia Sheinbaum announced this week.
The formal review process is scheduled to begin next week, with Mexico holding its first negotiations with the United States on March 16, followed by discussions with Canada in May.
“We want the reduction—or outright removal—of all tariffs on products that comply with the rules of origin, including those imposed by the United States on steel and aluminum,” Sheinbaum said, referring to measures implemented by Washington under Section 232 of the Trade Expansion Act.
The president emphasized that Mexico’s position also targets the automotive sector, a key pillar of regional trade and one of the most integrated industries across North America.
“Our position is clear. We want tariffs on vehicles to reach zero. If that is not possible, we at least want to ensure that quotas on Mexican vehicles do not exceed those applied to vehicles from Europe or South Korea, which already have trade agreements with the United States,” Sheinbaum said.
According to the Mexican government, these positions have already been raised directly with U.S. President Donald Trump and through working-level discussions between trade officials from both countries.
“This is what we have been requesting from the United States, both personally when I speak with President Trump and in working meetings with the secretary of commerce and the official responsible for trade agreements in the United States,” the president said.
Sheinbaum also highlighted two issues that Washington has emphasized as part of the USMCA review: adherence to rules of origin and the strengthening of regional supply chains.
“They have stressed that production in Mexico must rely on a regional supply chain—that is, that the majority of components used in products manufactured in Mexico should originate in North America,” she said.
The president indicated that ongoing communications with US officials aim to facilitate a review process that benefits all parties.
“There is permanent communication, and we believe that, for the benefit of both countries, these tariffs should not exist,” Sheinbaum said.
The forthcoming USMCA review will mark the first comprehensive evaluation since the agreement replaced the North American Free Trade Agreement (NAFTA) in 2020. Periodic assessments of the pact allow member countries to address emerging trade issues, adjust rules of origin and consider changes to tariffs and quotas.
Industry observers note that eliminating tariffs on steel, aluminum and vehicles could strengthen the competitiveness of Mexican exports in the North American market. Mexico has long positioned itself as a hub for automotive manufacturing, with complex supply chains linking producers across the region.
Tariffs, according to trade analysts, can distort competition and reduce efficiency within these highly integrated networks.
“Our goal is for tariffs on vehicles and industrial inputs to reach zero,” Sheinbaum reiterated. “If that is not possible immediately, we at least want to ensure that Mexico is not subject to higher quotas than other trading partners.”
Courtesy: www.mexicobusiness.news