US pushes tariffs and stricter rules as T‑MEC nears review

The United States is using the upcoming review of the United States‑Mexico‑Canada Trade Agreement (T‑MEC) to address a record‑high trade deficit with Mexico, which reached about $197 billion in 2025. U.S. Trade Representative Jamieson Greer said, “Our deficit with Mexico is a real problem,” and outlined a mandate to impose tariffs, quotas or other mechanisms to curb the imbalance. Washington also wants to tighten the treaty’s rules of origin, especially in the automotive sector, and extend stricter standards to electronics, pharmaceuticals and other strategic industries.

Mexico is coordinating a common position with the private sector ahead of the third round of bilateral talks. Economy Secretary Marcelo Ebrard met with leaders of the Consejo Coordinador Empresarial to stress the importance of preserving preferential market access while seeking to diversify exports and reduce reliance on the United States. Morena deputy Dolores Padierna framed U.S. pressure as an opportunity to “modify the neoliberal model” and boost domestic industry.

Canada’s negotiations remain stagnant, with U.S. officials noting no concrete concessions from Ottawa. The annual review mechanism, which will continue until the treaty expires in 2036, gives Washington leverage to reshape regional supply chains and limit dependence on Asian inputs, particularly from China.