Overview
- Progress toward a deal to trade U.S. tariff cuts for Mexican concessions has slowed, Reuters and Semafor reported Friday after people familiar with the talks said Commerce Secretary Howard Lutnick opposed major reductions.
- The proposed agreement would have cut a 25% U.S. tariff on Mexican automobiles and 50% levies on steel and aluminum in exchange for concessions from Mexico.
- Lutnick objected to large reductions in those auto and metal levies and to lowering tariffs on finished products made from steel and aluminum, according to reporting that cited people close to the negotiations.
- Mexico’s deputy trade minister said the talks showed progress and the U.S. Commerce Department described continued dialogue, but officials have not announced any new agreement.
- Analysts warn that keeping high U.S. levies could raise costs for American firms and consumers and could strain the trilateral North American trade framework with Canada if the impasse continues.