US–Mexico trade talks stall over steel and aluminium tariffs, Bloomberg reports
People familiar with the talks told Bloomberg a deal is now unlikely before the 3 November US midterm elections. Mexico's lead negotiator said he did not believe Commerce Secretary Howard Lutnick opposed tariff cuts.
Trade talks between the United States and Mexico have reached an impasse over US tariffs on steel and aluminium, Bloomberg News reported on Wednesday 21 October, citing people familiar with the matter. The Wall Street Journal first reported the stall.
According to Bloomberg, the talks cooled after US officials including Commerce Secretary Howard Lutnick objected to Mexican demands for lower tariffs on metals, and a US counter-proposal did not address Mexico’s concerns. The people said US officials were now comfortable with delaying a possible deal until after the 3 November midterm elections. The White House and the Commerce Department did not respond to Bloomberg’s requests for comment.
The US currently charges a 50% tariff on steel and aluminium imports and a 25% tariff on the non-US content of cars that comply with the North American trade agreement. Mexico has sought lower rates on cars and metals, including on products made from steel and aluminium, according to Bloomberg.
“We’re a little bit stuck on the details,” Mexico’s ambassador to the US, Roberto Lazzeri, said at a panel in Miami on Monday.
Mexico’s Economy Minister Marcelo Ebrard, the country’s lead negotiator, said late last week: “In my last conversation with him, I didn’t get the impression that he was opposed to reducing those tariffs.” President Claudia Sheinbaum said on Tuesday: “We haven’t reached a final agreement yet, but we’ve come quite a long way.”
More than 80% of Mexico’s exports go to the United States, Bloomberg reported.
Sources
- U.S.-Mexico trade talks hit impasse as Lutnick exerts influence · Bloomberg News (via Financial Post)
- US-Mexico trade talks stall over metal, auto tariffs; deal faces delay · CNBC-TV18
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