Mexico: trade talks with the U.S. on steel and aluminum tariffs hit an impasse, Bloomberg reports
Trade negotiations between the United States and Mexico have hit an impasse over tariffs on steel and aluminum, dashing earlier optimism about an imminent deal and likely pushing any major progress until after the November 3 midterm elections, sources told Bloomberg. This story follows what was reported Tuesday, when President Claudia Sheinbaum said both sides were "very close" to an understanding.
Talks cooled in recent days after U.S. officials, including Commerce Secretary Howard Lutnick, pushed back on Mexican officials' demands to reduce the metals tariffs, two of the sources said, speaking on condition of anonymity about private deliberations. Lutnick has sought greater influence over the negotiations after taking a back seat to U.S. Trade Representative Jamieson Greer, whose office had previously led the talks.
One sticking point is reducing tariffs on downstream metals products, which have piled up to cover a substantial share of Mexico's economy; Mexican leaders have said they did not want a deal without relief on that front. The talks stalled after a counterproposal from Lutnick failed to address Mexico's concerns.
Mexico's ambassador to the U.S., Roberto Lazzeri, acknowledged Monday at a Miami roundtable that the parties are "a bit stuck in the details," and said the snag is the Section 232 tariffs: 50% on steel and aluminum imports and 25% on the non-U.S. content of USMCA-compliant vehicles. Mexico seeks to cut auto tariffs from 25% to 15%, while Japan and South Korea currently face 15%, a disadvantage that worries Mexico's auto industry. Mexico's economy depends heavily on trade with the U.S., as more than 80% of its exports head to its northern neighbor.
Economy Secretary Marcelo Ebrard, Mexico's lead negotiator, rejected the suggestion that Lutnick is blocking a deal, saying his last conversation with him gave no impression of opposition to lowering those tariffs. "We are very close," Sheinbaum agreed on Monday, while acknowledging that points remain open because Mexico wants better terms before closing the agreement.
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Source: Bloomberg Línea