Commerce Secretary Howard Lutnick is reportedly set to travel to Mexico to engage in crucial trade talks with top officials, including President Claudia Sheinbaum.
Lutnick is expected to discuss U.S. tariffs on Mexican autos and metals, among other trade matters, with Sheinbaum and Mexican Economy Secretary Marcelo Ebrard, POLITICO reported on Wednesday.
U.S. Trade Representative Jamieson Greer is leading the review of these trade issues. However, Lutnick has sought to retain the Commerce Department’s authority over tariffs on U.S. auto, steel and aluminum imports, which remain key concerns for both Mexico and Canada.
While U.S.-Canada trade talks have stalled, negotiations with Mexico on the U.S.-Mexico-Canada Agreement’s (USMCA) six-year review are advancing, with an interim agreement potentially within weeks, as per the report.
“There’s a lot of substantial progress on a lot of the things that the U.S. wants,” a person familiar with the matter told the news outlet.
White House and the Commerce Department did not immediately respond to Benzinga’s request for comments.
Mexico Seeks Tariff Deals With US
Earlier this month, Reuters reported that Mexico’s Ebrard met with Lutnick on the sidelines of the G20 innovation gathering in Chapel Hill, in North Carolina to discuss trade and regional technological innovation. Sheinbaum said Ebrard was in the U.S. seeking tariff agreements, while also discussing bilateral trade and regional tech innovation with the Commerce Secretary.
According to a July USTR statement, the U.S. and Mexico are expected to hold a fourth round of USMCA review talks in Washington later this month, though no date has been set.
US-Canada Trade Tensions Rise
Washington’s trade relationships with its North American neighbors have been strained in recent times. On Tuesday, the Trump administration escalated the trade war with Canada by imposing new import bans on specific Canadian goods, including alcohol and dairy.
Lutnick reportedly rejected Canada’s requests for concessions on metal and auto tariffs, prompting Canadian negotiators to leave talks and triggering a 50% U.S. tariff. Canada responded with counter-tariffs that took effect Tuesday. The Commerce Secretary later stated that Canada walked away from the deal for political reasons, predicting Canadian negotiators would return after the elections. He said the negotiations failed despite favorable economic terms.
Meanwhile, Canadian Prime Minister Mark Carney stated that the trade talks failed as the U.S. demanded “dependency, not a true economic partnership.”
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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