Overview
- The two governments, which met Monday in Mexico City, set the first formal negotiating round for the week of May 25 in the lead‑up to the July 1 review deadline.
- USTR Jamieson Greer told auto and steel leaders that U.S. tariffs “have come to stay,” with current measures including a 25% levy on vehicles and steep duties on steel and aluminum under Section 232.
- Mexico shifted tactics, as Economy Secretary Marcelo Ebrard said the aim is to reduce U.S. tariffs where possible rather than eliminate them, while President Claudia Sheinbaum emphasized keeping the trade pact in place.
- The agenda includes tighter rules of origin, with a U.S. proposal reported by multiple outlets to require 100% North American content in engines, core electronics and software, plus talks on intellectual property, critical minerals and supply‑chain resilience.
- Agriculture is the main flashpoint, with USTR citing forced‑labor findings behind CBP holds on coffee from Finca Monte Grande and tomatoes from Agropecuarios Tom, as well as delays at Mexico’s Cofepris on biotech approvals that the U.S. says harm exporters.