Negotiations on the revision of the North American trade agreement (USMCA) are progressing well from the United States, aiming for greater regional integration starting in 2026. However, Mexico is unlikely to achieve zero tariffs on its trade with the United States, stated Pedro Casas Alatriste, Director General of the American Chamber of Commerce of Mexico (AmCham).
After mentioning that the USMCA public hearings will be held in the U.S. Congress from December 3 to 5—a crucial step in the next phase of the trilateral agreement’s review—the Executive Vice President of the U.S. private organization projected that Mexico would obtain “a tariff reduction, not a complete elimination,” given that tariffs are an integral part of President Donald Trump’s economic policy and trade guidelines.
He was questioned at a press conference about whether the 25% tariffs imposed by the U.S. government on sectors such as automotive, steel, and aluminum would remain in place. “Yes, there could be a tariff reduction. We would have to see specifically where, by how much, and how, but I want to make it clear that I don’t think we’re entering a new world of zero tariffs. I don’t think that’s going to happen,” Pedro Casas responded.
He insisted that applying tariffs is a measure without economic logic, and even though the Mexican government, in collaboration with U.S. authorities, has achieved very good results in fentanyl seizures, which are on the rise, while consumption and deaths from that drug have been steadily decreasing, and illegal border crossings are also at record lows, indicating that “there could be a tariff reduction.”
On July 1, 2026, Mexico, the United States, and Canada must decide whether they want to continue with the USMCA trade agreement. However, the only country that actually has a process in place regarding trade law is the United States, because neither Mexico nor Canada has undertaken this type of exercise, he noted.
The representative of U.S. companies operating in Mexico emphasized that this week is crucial in the United States for defining the path forward of the USMCA. “This December 3rd, 4th, and 5th, public consultations are being held. Anyone who wants to can go to the U.S. Congress and comment. So, as soon as this week is over, we will have absolute clarity on what is troubling the private sector and the governments, at least in the United States. This will give us time to, finally, in January 2026, the USTR must present the report on the hearings and the comments it received.”
He added that a report will then be submitted to the Legislative and Executive branches outlining what we can expect regarding the USMCA review.
Source: eleconomista
