Ebrard hopes for US response on steel, aluminum and auto tariffs before year-end

Economy Minister Marcelo Ebrard expressed hope on Monday for a positive response from the United States regarding the reduction of tariffs on steel, aluminum, and vehicles before the end of the year. The Trump administration imposed 50% tariffs on Mexican steel and aluminum in the previous year and 25% tariffs on Mexican vehicles, with a specific exemption for American content in those vehicles.

These tariffs were justified under national security under Section 232 of the U.S. Trade Expansion Act. Ebrard acknowledged that Mexico and its officials have been advocating for tariff reductions in trade talks with U.S. officials. He reiterated that the U.S. has a surplus with Mexico on the trade of steel, and thus, the Mexican government believes the tariff on the alloy is "unjustified and unfair."

He also added that Mexico's steel exports do not include any transshipped steel. As for the U.S. auto tariffs, Ebrard mentioned that the United States' "discount system" has been "very good." However, he emphasized the need for more favorable conditions for Mexico. Ebrard stated that Mexico has provided all the technical elements to U.S. officials and is eagerly awaiting their decision in the coming weeks.

Mexico and the United States aim to resolve trade-related issues following the decision not to renew the USMCA free trade pact for another 16 years. Mexico's trade talks with the U.S. have reportedly stalled due to U.S. Commerce Secretary Howard Lutnick's opposition to the tariff cuts Mexico seeks. Nevertheless, Ebrard did not detect any opposition to tariff reductions in his recent conversation with Lutnick.

President Donald Trump also claimed that the U.S. and Mexico were "very close to a great deal" that could substantially reduce the United States' significant trade deficit with Mexico.