Mexico expects lifting of steel and aluminum tariffs before the signing of new trade agreement with the U.S.

The Mexican Ambassador to the United States, Gerónimo Gutiérrez, said on Monday that he expects the Trump administration to lift the U.S. steel and aluminium tariffs imposed upon Mexico before the signing of the new trade agreement (USMCA) with Mexico and Canada by the end of this month.

Even if it is not solved, they are expected to get a clear indication of a solution before the signing. The three presidents are meeting in Argentina, at the G-20 summit to be held between Nov. 30 and Dec. 1.  

President Donald Trump, his Mexican counterpart Enrique Peña Nieton and Canadian Prime Minister Justin Trudeau are expected to meet in Buenos Aires and sign the new United States Mexico Canada Agreement on the sidelines of the summit, which will host representatives from 20 major economies.

It is not clear if the solution will be as early for Canada as Maxico.  Canada is negotiating for a more permanent lifting of any sanctions, according to Eric Miller, a trade consultant who has worked for the Canadian government.  If U.S. tariffs were lifted on Mexico, it is expected to revoke the retaliatory tariffs on U.S. goods, mostly agriculture exports.

Miller said the lifting of the retaliatory tariffs is important for Trump as he is banking on the support of farm belt. The unwinding of all those tariffs would take time but the process is expected to start before the signing.

“All sectors of our economy are being affected by these tariffs – manufacturers are struggling to find materials to make products in the U.S., farmers and ranchers are having a hard time exporting their goods to countries that have imposed retaliatory tariffs, and consumers are beginning to see higher prices for everyday goods,” Rufus Yerxa, President of the National Foreign Trade Council said.

The National Foreign Trade Council, Dairy producers, beer makers, automakers and other agriculture groups have been critical of Trump’s tariffs and all the industries are waiting to see how the negotiations move before the agreement.