US-Mexico Tariff Talks Slow Over Opposition to Cuts

Progress toward a U.S.-Mexico tariff agreement slowed in recent days after Commerce Secretary Howard Lutnick objected to substantial cuts in U.S. tariffs, the Wall Street Journal reported on October 15, citing people familiar with the talks. Washington and Mexico City had been nearing a deal in which the U.S. would reduce the 25% tariff on Mexican automobiles and the 50% tariffs on steel and aluminum, including finished derivative products, in exchange for Mexican concessions. That pact would have opened talks on extending USMCA. Months of work had been led by U.S. Trade Representative Jamieson Greer. People familiar with the talks cast Lutnick's stance as the key obstacle. U.S. and Mexican officials say negotiations continue and deny an impasse. Mexican Deputy Commerce Minister Luis Rosendo Gutiérrez said in an interview that the negotiations are progressing and we maintain a constructive relationship with the U.S. Department of Commerce. Mexico had pushed for rates of 15% or lower and a broader rebate for USMCA-produced goods; no agreement on those terms is reported. The episode is the second Lutnick intervention in advanced North American talks. In late August, U.S.-Canada talks ended after he rejected steel, aluminum, and auto cuts; the U.S. then tariffed $20 billion in Canadian goods, Canada retaliated, and the U.S. banned some Canadian wine imports. Trump has threatened to double Canadian car tariffs to 50% in January without a deal. Mexico has not imposed retaliatory tariffs. No left- or right-rated coverage was recorded for this story.