Mexico seeks US tariff relief on aluminium, steel and vehicles before end of 2026

Mexico hopes to secure a favourable response from the United States to its request for lower tariffs on aluminium, steel and vehicles before the end of 2026, Economy Minister Marcelo Ebrard said.

The Trump administration imposed 50 per cent tariffs on Mexican aluminium and steel and 25 per cent tariffs on vehicles, with an exemption for vehicles with US content. The duties were introduced on national security grounds under Section 232 of the US Trade Expansion Act.

Speaking at a press conference in Mexico City, the Economy Minister said Mexican officials had presented technical arguments and supporting evidence to US authorities to justify reducing the tariffs. He argued that the United States runs a steel trade surplus with Mexico, making the tariffs on the metal unjustified from the Mexican government’s perspective.

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Ebrard also said Mexico’s exports to the United States do not include steel imported into Mexico and then exported to another country.

Regarding vehicle tariffs, Ebrard welcomed the US system that reduces duties based on the US content of Mexican-made vehicles. The system brings the average tariff on these vehicles down to around 15 per cent, but Mexico is seeking further adjustments to secure more favourable trading conditions.

Ebrard said, “We’ve already provided them with all the technical elements. We’ll have to wait and see what decision they make in the coming weeks. It’s hard to say what day they’ll make it.” 

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President Claudia Sheinbaum reiterated that Mexico’s objective in trade negotiations is to reduce the tariffs imposed on its exports as much as possible.

Trade negotiations continue

Mexico and the United States have been discussing several trade issues following Washington’s decision in July not to renew the United States-Mexico-Canada Agreement (USMCA) for an additional 16 years. The agreement remains in force, allowing more than 80 per cent of Mexican goods to enter the US market tariff-free.

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Ebrard emphasised that Mexican exports currently face lower average tariffs in the United States than exports from other major trading partners. He stated, “We pay an average effective tariff of 3 per cent. …. There is no main exporting country that has a better condition.”  

According to Ebrard, Mexico’s main objective is to preserve that favourable trade position while seeking lower duties on aluminium, steel and vehicles.