Mexican President Claudia Sheinbaum confirmed on September 18 that her Wednesday phone call with US President Donald Trump produced partial consensus on trade matters, though specific details will remain undisclosed until a comprehensive package is finalized. The Mexican side described the discussions as progressing smoothly, with current priorities including US tariffs on Mexican steel, aluminum, and automotive products.

Partial consensus falls short of a formal agreement

At a press conference, Sheinbaum noted the call was already part of the scheduled bilateral communication framework. Mexican Foreign Minister Roberto Velasco and Economy Minister Marcelo Ebrard both participated in the conversation. She characterized it as a "very good call" during which alignment was reached on several issues, but no official statement can be issued at this stage. Working teams from both nations will continue negotiations, with terms to be revealed only after a complete deal is struck. Existing information is insufficient to determine which goods, tariff levels, or implementation timelines the partial consensus might cover. This call represents progress in negotiations but does not equate to the signing of a new trade agreement.

Steel, aluminum, and auto tariffs dominate the agenda

The Mexican government is seeking to reduce US tariffs imposed on its steel, aluminum, and automobile exports. Sheinbaum stated that the additional duties undermine the full implementation of the existing North American trade arrangement and put pressure on the highly integrated cross-border supply chains. The US has levied a 25% additional tariff on imported vehicles since April 2025. Cars qualifying for preferential treatment under the US-Mexico-Canada Agreement can have tariffs calculated based on the value of their non-US content; certain automotive parts meeting agreement conditions receive special handling. The auto industry operates a cross-border production system between the two countries, where components and semi-finished goods may cross the border multiple times before final assembly. While calculating tariffs on non-US content provides some relief, it still raises the cost of Mexican-assembled vehicles entering the US market.

Steel and aluminum products also remain a persistent area of discussion for Mexico. The government aims to secure bilateral arrangements that lower related duties, moving trade conditions closer to the duty-free framework established by the USMCA. Given the scale of annual bilateral trade, this round of negotiations carries direct implications for manufacturing in both nations.

Annual bilateral trade approaches one trillion dollars

In 2025, total two-way trade in goods and services reached approximately $964.1 billion, with merchandise trade accounting for $871.6 billion. The US exported $337.3 billion in goods to Mexico and imported $534.3 billion, resulting in a $197 billion merchandise trade deficit. The Trump administration has consistently pushed to narrow this gap and seeks to adjust existing trade terms, while Mexico emphasizes the deep integration of the two economies and hopes to preserve preferential arrangements within the North American region. The USMCA, in effect since July 2020, serves as the foundational framework for current bilateral goods trade. Since the core of these negotiations remains undisclosed, it is essential to distinguish between bilateral arrangements targeting steel, aluminum, and auto tariffs from potential changes to the agreement's rules themselves.