Overview
- U.S. Trade Representative Jamieson Greer told Mexican auto and steel leaders that tariffs are here to stay and that a return to zero-tariff trade is not on the table, according to industry attendees.
- Greer and Mexican Economy Minister Marcelo Ebrard agreed to start formal bilateral negotiations in Mexico City during the week of May 25 as part of the USMCA six-year review.
- A source said U.S. negotiators floated tighter rules of origin that could require 100% North American sourcing for key parts like engines, major electronics, and software.
- Mexican President Claudia Sheinbaum said the government wants a preliminary deal on steel and automotive duties before the USMCA review wraps up.
- Mexico’s auto and steel sectors now face a 25% U.S. duty on car imports and up to 50% on basic steel and aluminum, pressures that contributed to falling auto exports in 2025 and about 60,000 lost industry jobs last year.