Background on Key Figures and Relevance
Marcelo Ebrard, Mexico’s Secretary of Economy, is leading negotiations on tariffs between Mexico and the United States. His role is crucial as he works to maintain favorable trade conditions for Mexico, ensuring that the country’s relative position regarding tariffs on US customs remains strong. This is significant because Mexico has successfully maintained lower tariffs compared to other countries, which is vital for its economy.
Current Status of Negotiations
Ebrard announced that the negotiations, which are 90% complete, will continue at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea from November 1, 2025. This comes after US President Donald Trump’s 90-day extension to avoid raising tariffs on Mexican imports.
Key Points of Negotiation
- Tariff Adjustments: Both countries are discussing potential changes to tariffs on various products, including automotive parts, light vehicles, steel, aluminum, and copper.
- T-MEC Review: The ongoing evaluation of the US-Mexico-Canada Agreement (T-MEC) aims to assess its performance and propose modifications, with a decision on extending the agreement for an additional 16 years.
- Current Tariffs: US customs currently apply tariffs of 35% to Canada and 25% to Mexico on products not complying with the T-MEC, due to perceived lack of cooperation on fentanyl and migration. Tariffs of 25% are also applied to light vehicles for both countries (excluding US content) and 50% on steel, aluminum, and copper for Mexico and Canada.
Mexico’s Proposed Measures
Under the administration of Claudia Sheinbaum, Mexico proposed imposing the maximum tariff allowed by the World Trade Organization (WTO) on 1,463 product classifications across 17 strategic sectors. This initiative is part of the 2026 Economic Package, which requires legislative approval in 2025 and includes steel products.
Key Questions and Answers
- What are the current tariffs applied by US customs? US customs currently apply tariffs of 35% to Canada and 25% to Mexico on products not complying with the T-MEC, due to perceived lack of cooperation on fentanyl and migration. Tariffs of 25% are also applied to light vehicles for both countries (excluding US content) and 50% on steel, aluminum, and copper for Mexico and Canada.
- What is the purpose of the ongoing T-MEC review? The review aims to assess the performance of the US-Mexico-Canada Agreement and propose modifications, with a decision on extending the agreement for an additional 16 years.
- What measures has Mexico proposed regarding tariffs? Mexico has proposed imposing the maximum tariff allowed by the WTO on 1,463 product classifications across 17 strategic sectors as part of the 2026 Economic Package.
