US-Mexico-Canada trade pact negotiations continue amid new U.S. tariffs

Mexico, the United States and Canada concluded the third round of USMCA (T‑MEC) talks on 23 July, describing the discussions as constructive and noting progress on steel, aluminium, automotive rules of origin, labour, security and electronic‑payments issues. U.S. Trade Representative Jamieson Greer met with President Claudia Sheinbaum and Economy Minister Marcelo Ebrard in Mexico City, stressing that cooperation on water‑sharing and border security is also expected.

On the same day the United States announced a new “forced‑labour” tariff regime of 10‑12.5 % on imports from 60 countries. Because more than 80 % of Mexican shipments qualify under the USMCA, roughly 85 % of Mexico’s exports to the United States will retain a zero‑tariff rate, while the remaining 15 % will face the same 10 % rate that previously applied under Section 122. Mexican officials repeatedly stressed that the effective tariff for Mexico does not change.

Greer indicated that the United States hopes to sign provisional agreements with both Mexico and Canada by the end of 2026, but that the most complex issues – especially rules of origin, labour and environmental provisions – are likely to extend into 2027. A fourth round of talks has been scheduled for early September. The outcome of the review is seen as critical for regions such as Tlaxcala, where manufacturing linked to the pact represents about 30 % of state GDP.