U.S. Trade Representative Jamieson Greer has reportedly stated that the tariffs imposed by President Donald Trump on Mexico’s auto and steel sectors will continue, despite the upcoming renegotiations of the U.S.-Mexico-Canada Agreement (USMCA).



This information was shared with Mexican industry groups and top business leaders during meetings in Mexico City on Monday, including chambers representing commerce, automotive, and iron and steel sectors, as reported by Reuters on Tuesday. 



The meetings were focused on the objectives for revamping the USMCA, with a review deadline set for July 1. Greer said tariffs are likely to remain, noting that Trump supports them and that a return to a zero-tariff global system is not expected, a source told the publication. 



Greer also noted that U.S. officials are exploring ways to assist Mexico, but did not provide specific details. This marks the first time Greer has publicly stated that Mexico will have to contend with some level of tariffs, even after the USMCA is renegotiated this year.



The USMCA trade deal is approaching its July 1 review deadline, with formal negotiations set to begin the week of May 25.



USTR did not immediately respond to Benzinga‘s request for comments. 



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<h2>Mexico Pushes Deal On US Tariffs</h2>



Mexico's auto and steel industries are heavily exposed to U.S. tariffs due to their reliance on exports. After decades of tariff-free trade under USMCA/NAFTA, Trump imposed a 25% auto import duty last year, later lowering rates for several other countries, leaving Mexico at a competitive disadvantage and pushing it to seek relief through USMCA negotiations. 



On Monday, Mexican President Claudia Sheinbaum said that the country aims to secure a preliminary deal on steel and automotive tariffs before finalizing the USMCA review.



Previously, in December, Greer had hinted at the possibility of the Trump administration withdrawing from the USMCA in 2026, despite the deal's text advocating for members to remain until at least 2036. 



In March, the Trump administration launched a sweeping trade investigation targeting 16 partners, including China, Mexico, and the EU, in an attempt to replace Trump‘s tariffs under the International Emergency Economic Powers Act (IEEPA), which were ruled illegal by the Supreme Court. 



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Image via Shutterstock



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US trade chief Greer says Trump tariffs on Mexico's auto and steel will continue despite upcoming USMCA renegotiation talks.

Jamieson Greer Signals No Return To 'Zero-Tariff Trade' For Mexico Despite Upcoming USMCA Renegotiation: Report