Mexico ‘Optimistic’ on US Trade Deal After Canada Talks Collapse

Mexican President Claudia Sheinbaum remains hopeful about reaching a trade deal with US President Donald Trump, as her chief negotiator leads discussions in Washington, following the collapse of US-Canada negotiations. She declared her optimism during a press conference on Monday, echoing Trump's statement that an agreement is hoped for with the US.

"I'm optimistic an agreement can be reached," she affirmed. Economy Minister Marcelo Ebrard, Sheinbaum's top trade negotiator, plans to stay in Washington for several days, aiming to reduce the 50% US tariffs on Mexican steel and aluminium, and 25% duties on cars. The USMCA trade pact, which includes the US, Mexico, and Canada, is now in the sixth year and is undergoing annual reviews.

Recently, US negotiations with Canada broke down, leading Trump to announce plans to double tariffs on Canadian cars and parts starting next year. This move also led to a 50% US levy on approximately US$20 billion worth of Canadian goods, while Prime Minister Mark Carney announced retaliatory tariffs set to commence on September 8.

Canada's current import duty on cars is 25%, applied solely to the non-US content of the vehicles. Additionally, Mexican steel imports are subject to 50% levies.