Before renewed talks on the USMCA, Mexican officials reported progress on more than two dozen issues raised by the U.S., while also pushing to reduce tariffs on steel, aluminum, and automotive products.
Driving the news: Officials from Mexico, the United States, and Canada will meet in Mexico on July 20 for a third round of bilateral negotiations on the USMCA.
Officials from the three countries met virtually July 1 to discuss the operation of the pact.
The U.S. has raised concerns about the trade deficit and sought to negotiate.
Zooming in: Ahead of the next round of talks, Mexico’s Economy Minister Marcelo Ebrard told the Mexico Business News the number of concerns raised by the U.S. has dropped from 54 to 14. He raised 13 measures of his own, with automotive competitiveness being one of Mexico’s priorities after recent U.S. actions with Section 232 tariffs.
Section 232 Tariffs impact: The U.S. duties imposed on the steel, aluminum, and automotive products outside of the USMCA have dramatically impacted Mexico through the first half of 2026.
According to the Mexico Business News, automotive shipments have been reduced by 5.1% YOY through April 2026 to $48.6 billion.
The declines in the auto sector also threaten as many as 350,000 jobs.
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Bottom line: With the U.S. decision not to renew the pact, which started in 2020, it will now undergo annual reviews unless an agreement is reached.
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