Mexico and the United States are assessing whether they can reach an interim trade agreement before the November 3 US midterm elections, as negotiations continue over tariffs and key trade restrictions. Mexican President Claudia Sheinbaum said Wednesday that discussions were advancing, although several major issues remain unresolved.
Mexico is seeking significant reductions in US tariffs on automobiles, steel, and aluminum. Negotiators are also addressing Washington’s concerns over automotive content requirements and Chinese investment. A preliminary agreement could provide Mexico with tariff relief while allowing both countries to make progress on broader trade disputes.
“We are making progress” in areas where the two countries can reach an agreement and strengthen their relationship, Sheinbaum said during her daily press conference.
The negotiations are taking place amid growing uncertainty surrounding the United States-Mexico-Canada Agreement (USMCA). The existing pact remains in force, but Washington declined in July to extend it for another 16 years, leaving the agreement subject to annual reviews and broader discussions over rules of origin, China, labor standards, and environmental provisions.
Mexico’s separate negotiations with Washington have continued while US-Canada trade talks have deteriorated. The breakdown in those discussions triggered a tariff dispute, including new US import bans affecting Canadian alcohol, motorcycles, and dairy products. Canada has pledged dollar-for-dollar retaliation, further complicating North American trade relations.
Against this backdrop, Mexico is pursuing cooperation with Washington in an effort to secure tariff relief rather than become caught in a broader trade confrontation. Although neither government has established a formal deadline, officials have expressed hope that an agreement could be reached before the US midterm elections.
A deal could offer Mexico greater clarity for industries exposed to US tariffs and help reduce uncertainty for businesses operating across North America. However, the outcome remains uncertain, particularly while disagreements over automotive rules, metals tariffs, and Chinese investment continue.
