Mexico has asked the United States to reconsider tariffs on Mexican-made vehicles and steel as discussions surrounding the review of the United States-Mexico-Canada Agreement (USMCA) move forward.
Economy Secretary Marcelo Ebrard said the Mexican government submitted an analysis to U.S. officials supporting its request to reduce or eliminate the 25% tariff currently applied to vehicles manufactured in Mexico.
Mexico points out that vehicles imported from countries including Japan, South Korea, Germany and Morocco face a 15% tariff. Its position is that the difference warrants further review given the high level of supply-chain integration between Mexico and the United States, as well as the significant share of U.S.-made components used in Mexican vehicle production.
The Mexican government is also seeking changes to the 50% tariff on steel. Officials argue that Mexico runs a steel trade deficit with the United States, which they believe should be considered when evaluating the current tariff structure.
Mexico has also proposed holding off on additional tariffs while USMCA-related talks remain underway.
Ebrard said frequent engagement with U.S. officials is intended to maintain direct communication throughout the process. The next round of Mexico-U.S. discussions is expected to take place in Washington in September.
Source: El Financiero
