Mexico and US seek tariff relief as Sheinbaum says bilateral deal is advancing

A new push for a bilateral deal

Mexican President Claudia Sheinbaum said on 18 September that she had spoken with US President Donald Trump and described the conversation as positive. She said the two governments were making progress toward a bilateral trade agreement, while signalling that Mexico’s principal objective is tariff relief for goods central to its industrial economy. Her comments provide the clearest public indication so far that negotiations remain active, but they do not amount to a signed accord or a final tariff settlement.

Sheinbaum said Mexico wants lower US duties affecting steel, aluminium and automobiles. Those sectors sit at the centre of North American manufacturing chains, where components and finished products cross borders repeatedly before reaching consumers. Any agreement that changes their treatment would therefore affect factories, suppliers and transport networks on both sides of the border. The Mexican president also stressed sovereignty and mutual respect, language that reflects domestic sensitivity to Washington’s pressure tactics.

Pressure from Washington

The negotiations are taking place after the Trump administration imposed or threatened tariffs on a wide range of trading partners. A White House proclamation on unmanned aircraft and components illustrates the administration’s broader use of tariffs as an economic-security instrument, including differential treatment for partners that reach trade and security arrangements with Washington. That policy background helps explain why Mexico is seeking a negotiated exemption rather than waiting for a general revision of US tariff policy.

The timing is politically important. Mexico and the United States are trying to reach an understanding before the US midterm elections, when inflation and the cost of imported goods are likely to remain politically salient. Sheinbaum’s government wants to protect export industries while avoiding concessions that could be portrayed at home as surrendering Mexican policy autonomy. Trump, meanwhile, has linked trade disputes with broader complaints about deficits, interest rates and the treatment of American producers.

What to watch next

The immediate test will be whether officials convert presidential-level contact into a written framework. Key questions include the proposed tariff rates, rules of origin for vehicles, treatment of steel and aluminium, and whether enforcement provisions would apply across the existing USMCA system. Until those details are public, the verified development is diplomatic and economic progress claimed by Mexico, not a completed agreement. Businesses are likely to delay major planning decisions until negotiators clarify whether relief would be temporary, sector-specific or embedded in a broader trade pact.