Mexico will bring an agenda focused on tariffs affecting the automotive and steel industries to the first official round of USMCA review talks with the United States. Both sectors are considered key pillars of North America’s integrated production system.
According to reports published by Reforma, Economy Secretary Marcelo Ebrard said Mexico will push for a review of the 50% tariff on steel and aluminum, as well as the tariff structure affecting the automotive industry, during the formal start of bilateral discussions with officials from the Office of the United States Trade Representative (USTR).
Ebrard explained that this is not a completely new discussion, but rather the first formal conversation within the practical review phase of the trade agreement between Mexico, the United States, and Canada.
WHAT WILL MEXICO PROPOSE REGARDING STEEL AND ALUMINUM?
Marcelo Ebrard said Mexico will argue that the 50% tariff on steel and aluminum is unjustified within a region operating under a free trade agreement.
The Economy Secretary stated:
“What we are going to propose is what we have said before: in the case of steel and aluminum, the 50% tariff is unsustainable and has no justification.”
Mexico’s central argument is that these tariffs hurt industries that rely on shared supply chains. In other words, these are not simply products crossing a border — they are industrial inputs that form part of regional manufacturing processes.
In practical terms, the tariffs may affect:
- Production costs
- Final consumer prices
- Industrial competitiveness
- Investment planning
- Relationships between Mexican and US suppliers
WHAT DOES MEXICO WANT FOR THE AUTOMOTIVE SECTOR?
Regarding the automotive industry, Ebrard said Mexico will defend a “systemic approach.” This means the discussion should not focus only on a specific tariff, but on how the entire trade framework affecting vehicles and auto parts operates.
The official explained:
“In the case of the automotive industry, we maintain that there must be a systemic approach — not only Mexico’s tariffs, but also how the entire tariff system functions, including rules of origin.”
The automotive industry is one of the most integrated sectors under the USMCA. A vehicle may contain parts manufactured in different North American countries before reaching the final consumer. Because of this, changes to tariffs or rules of origin can alter costs, investments, and production chains.
WHY DO RULES OF ORIGIN MATTER?
Rules of origin determine what percentage of a product must be manufactured within the region in order to receive the benefits of the trade agreement.
In the automotive sector, these rules are especially important because they determine whether a vehicle or auto part qualifies for preferential treatment under the USMCA.
Put simply: if a company wants to sell a car under USMCA conditions, it must prove that a significant portion of the vehicle was produced within North America.
For that reason, Mexico wants the negotiations to include:
- Tariffs
- Rules of origin
- Supply chains
- Competitive conditions
- The functioning of the regional trade system
WHAT ISSUES WILL BE DISCUSSED THIS WEEK?
In addition to tariffs on automobiles, steel, and aluminum, the first round’s agenda also includes issues related to trade, industry, and economic security.
Topics expected to be discussed include:
- Medical devices
- Labor progress and compliance
- Critical minerals agreements
- Economic security
- Rules of origin
- Industrial matters tied to regional integration
These issues matter because the USMCA is no longer viewed solely as a traditional trade agreement. It is increasingly seen as a framework for organizing supply chains, protecting strategic sectors, and defining how North America competes against other global regions.
WHEN WILL THE NEXT REVIEW ROUNDS TAKE PLACE?
Mexico and the United States have agreed on a multi-stage work schedule.
According to statements by Ebrard and national media reports, the second round will take place in Washington on June 16–17, while a third meeting is scheduled for July 20 in Mexico City.
The timeline is significant because July 1, 2026 marks the formal review point established by the USMCA, which entered into force in 2020 and requires periodic reviews every six years.
The July 20 meeting — occurring after that date — would help define the next phase of the process.
WHAT WILL BE DISCUSSED IN WASHINGTON?
The next meeting in Washington is expected to address topics such as:
- Agriculture
- Competitive conditions
- Other unresolved trade issues
Agricultural trade is considered one of the most sensitive areas of the bilateral relationship because food and agricultural commerce between Mexico and the United States is deeply interconnected.
WILL THE REVIEW END ON JULY 1?
Not necessarily. Ebrard clarified that continuing discussions beyond July 1 does not imply a problematic delay, but rather reflects the complexity of the issues involved.
He explained:
“It means we have not finished all the topics yet, and we wanted to establish a forward-looking scenario regarding the next steps.”
He also rejected the idea that Mexico is rushing the negotiations:
“Mexico is not in a hurry, but it is making progress.”
The Mexican government’s message is that it wants an orderly negotiation process rather than a rushed agreement that leaves strategic issues unresolved.
WHY DIDN’T JAMIESON GREER ATTEND THIS ROUND?
Ebrard explained that Jamieson Greer did not attend this week’s meetings because he was called to a cabinet meeting by President Donald Trump.
The Economy Secretary said the absence does not reduce the importance of the talks:
“Yes, Ambassador Greer is not here today for that reason, because the President called a Cabinet meeting. We did not know that was going to happen.”
Ebrard added that the presence of USTR officials still reflects a strong working relationship with the US side.
WHAT DOES THIS REVIEW MEAN FOR MEXICO?
The USMCA review comes at a moment when Mexico is seeking to protect its role within North American production chains.
For Mexico, the agreement is not only a gateway to the US market, but also a framework that helps attract investment, sustain exports, and provide certainty to industrial sectors.
Mexico’s main priorities include:
- Preventing tariffs from reducing competitiveness
- Defending regional integration
- Maintaining clear rules for the automotive industry
- Protecting steel, aluminum, and manufacturing sectors
- Ensuring rules of origin do not disproportionately affect companies operating in Mexico
WHY DOES THIS MATTER FOR CONSUMERS AND EMPLOYMENT?
Although the USMCA may seem technical, its effects can directly impact everyday economic life.
If tariffs remain in place or increase, companies may face higher costs. That can influence prices, investment decisions, production levels, and employment — especially in states heavily dependent on automotive manufacturing, industrial production, or steelmaking.
It can also affect Mexican suppliers that form part of integrated supply chains with companies in the United States and Canada.
For that reason, the discussion matters not only to government officials and corporations, but also to:
- Industrial jobs
- Consumer prices
- Exports
- Foreign investment
- Supply chain stability
MEXICO ENTERS THE REVIEW WITH A CLEAR POSITION
Mexico’s position is based on a central argument: the USMCA should be reviewed as an integrated regional system, not as a collection of isolated measures.
Ebrard said Mexico had already been building these arguments and that this week marks the formal beginning of a process that was already underway.
“We have been laying the groundwork for all of this. It is not new. What happens now is that this is the first formal conversation — in other words, we are practically already in the review phase,” he said.
The first round will place industrial, labor, medical, and economic security issues on the table. But for Mexico, the most important objective will be defending the sectors that sustain much of its trade relationship with the United States: automobiles, steel, and aluminum.
Source: msn
