Mexico-US Trade Talks Delayed as Tariff Relief Tops Agenda

MONTREAL (Scrap Monster): The fourth round of bilateral trade negotiations between Mexico and the United States has been pushed back from September and could now take place in October, keeping steel, aluminum and automotive tariffs at the center of the countries' trade agenda.

Luis Rosendo Gutiérrez, Mexico's deputy economy minister for foreign trade, said scheduling conflicts prompted the delay, including Chinese President Xi Jinping's visit to the United States and upcoming G20 trade meetings.

Despite the postponement of the formal negotiating round, Gutiérrez said technical coordination with the Office of the U.S. Trade Representative remains an almost daily process.

Fourth U.S.-Mexico Trade Round Moves Toward October

The fourth bilateral negotiating round had been expected to take place in Washington during September following three earlier rounds connected to the 2026 review of the United States-Mexico-Canada Agreement.

Gutiérrez said the meeting will not take place as previously planned and could instead be held in October. An exact date has not yet been announced.

The delay was attributed primarily to diplomatic scheduling rather than a suspension of negotiations.

Mexico's trade team continues to work with USTR and other U.S. officials while the two sides prepare for the next formal round.

Steel, Aluminum and Auto Tariffs Remain Mexico's Priority

Mexico continues to seek reductions in U.S. Section 232 tariffs affecting steel, aluminum and automobiles.

“Our priority is reducing Section 232 tariffs on steel, aluminum and automobiles,” Gutiérrez told reporters following the American Society of Mexico's binational convention in Mexico City.

The U.S. tariff system covering those sectors is complex and varies by product classification, origin and U.S. content.

Many steel and aluminum articles remain subject to substantial Section 232 duties, while separate rules apply to certain derivative products and qualifying USMCA merchandise.

For automobiles that qualify for preferential treatment under USMCA, the U.S. Section 232 auto tariff generally applies at 25% to the vehicle's non-U.S. content when the required documentation is accepted.

Automotive Content Is Another Major Sticking Point

The negotiations extend beyond headline tariff rates.

Automotive rules of origin and regional content requirements have been a recurring issue throughout the bilateral rounds.

During the July negotiating round, U.S. and Mexican officials discussed automobiles alongside steel and aluminum, labor, agriculture, electronic payment services and economic security.

U.S. officials have pushed for stronger North American content and tighter safeguards against third-country inputs entering regional supply chains.

Mexico has resisted proposals it believes could weaken the competitiveness of its automotive manufacturing base.

Negotiating Agenda Expands From 54 to Nearly 90 Issues

Gutiérrez said the list of subjects under discussion has expanded from 54 to almost 90.

He described the increase as a natural consequence of working through complicated trade issues rather than simply adding unrelated demands.

Digital-platform regulation is one example of an issue that has generated additional technical questions during the negotiations.

Mexico Offers to Increase U.S. Purchases

Mexico has also signaled that it is prepared to increase imports from the United States while reducing purchases from some other countries.

President Claudia Sheinbaum said the approach forms part of discussions over the U.S. trade deficit and the future structure of North American commerce.

For Mexico, the objective is to secure more competitive U.S. tariff treatment while preserving access to its largest export market.

USMCA Review Continues in Parallel

The bilateral discussions are taking place alongside the wider review of the USMCA.

The United States, Mexico and Canada formally conducted the agreement's first joint review on July 1, 2026.

The United States did not agree at that stage to renew the agreement in its existing form. USMCA nevertheless remains in force while negotiations over unresolved issues continue.

Previous U.S.-Mexico negotiating rounds have addressed steel and aluminum trade, automotive rules of origin, agriculture, labor, economic security and regulatory compatibility.

Why the Talks Matter to Steel and Aluminum Markets

Mexico is deeply integrated into North American automotive, steel and aluminum supply chains, meaning tariff changes can affect manufacturers and metals suppliers on both sides of the border.

Lower duties could reduce costs for Mexican exporters and U.S. manufacturers using Mexican metal or components, while continued tariffs could influence sourcing decisions and regional investment.

The outcome will therefore be closely watched by steel mills, aluminum producers, metal service centers, automakers, parts suppliers and scrap processors operating across North America.

What Happens Next?

No firm date has yet been announced for the fourth negotiating round.

Mexican officials currently expect the meeting to take place in October while technical teams continue working on individual issues in the meantime.

Steel, aluminum and automotive tariffs are expected to remain among Mexico's highest-priority subjects when formal talks resume.