Trade negotiations between the United States and Mexico have reached an impasse after months of talks between officials about a deal to reduce duties on critical imports from beyond the southern border.
Objections from U.S. Commerce Secretary Howard Lutnick precipitated the breakdown, according to a report from the Wall Street Journal.
The two sides had been homing in on an agreement that would draw down American duties on steel, aluminum and cars in exchange for certain concessions from Mexico, and both Mexican officials and private sector executives were buoyant about the prospect of a deal.
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This limited agreement, according to the outlet’s unnamed sources, would have cleared a path toward further discussions about the U.S.-Mexico-Canada Agreement (USMCA), which the U.S. declined to renew upon its six-year joint review over the summer.
Progress toward the interim deal began to lose momentum in recent days, the WSJ wrote, due to friction stemming from the 25 percent U.S. tariffs on cars and 50 percent duties on metals, which the Commerce Department is responsible for administering in the service of national security. Lutnick has been resistant to reducing the tariffs, the sources said.
Both sides have denied that negotiations had stalled, saying they’re still heavily engaged in talks.
The development calls into question the future of the USMCA , which will face annual reviews until 2036—or until one of the three partner nations decides to pull out.
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