Mexico Business Lobby Seeks US Tariff Cuts in Round 4
MEXICO · TRADE
Key Facts
- —The country Mexico, the southern US neighbour, sends more than 80% of its exports to the United States, EFE reported on Monday.
- —Why it matters US tariffs on Mexican cars, steel, aluminium and copper raise costs for factories and supply chains on both sides of the border.
- —What happened On Monday, 12 October, business leader José Medina Mora proposed that Mexico buy more US oil and fuel to shrink the US trade deficit.
- —The goal He said the immediate aim is US tariff cuts under Section 232, the national-security duties on cars, steel, aluminium and copper.
- —The tariffs now Steel and aluminium pay 50% under a June 2025 White House order, and Mexican cars pay 25%, The Mexican Times reported on 11 October.
- —Still open The fourth round of US-Mexico trade talks still has no date, and no tariff cut has been agreed.
- —Prediction markets Polymarket gives a formal extension of the North American trade pact in 2026 a 9% chance (13 October, 2:19 a.m. ET).
Mexico’s top business lobby wants the next round of trade talks with Washington to deliver US tariff cuts on cars, steel, aluminium and copper. To help get there, its president proposed on Monday, 12 October, that Mexico buy more American oil, gas, gasoline and diesel.
José Medina Mora, who heads the Business Coordinating Council (CCE), spoke at a Mexico City press conference, EFE and Diario de México reported. For US energy producers, carmakers and steelmakers, it points to a possible trade-off: more American fuel sales in exchange for lower tariffs.
What the Business Council Proposed
The CCE is the umbrella body of Mexico’s main business chambers. It marked its 50th anniversary at Monday’s event, held at the Club de Industriales, Diario de México reported.
His plan answers Washington’s main complaint, the US trade deficit with Mexico, which EFE called one of President Donald Trump’s chief concerns. The goal is US tariff cuts without breaking the North American trade pact.
Why Oil Is on the Table
“We could export the oil we extract to other countries and import the oil we need from the United States,” he told reporters. According to EFE, he added that some Mexican refineries need crude of a different quality from Mexico’s own.
That mismatch limits their gasoline output and raises the production of heavy fuel oil, he said. Buying US crude, gas and fuels would narrow the US deficit without cutting Mexican exports, he argued.
“For President Trump the critical variable is called the deficit,” Medina Mora said. “Everything we do to reduce the deficit will help us.”
He also proposed reviewing how electronic components from Asia that reach Mexico through the United States are counted. Their passage through US territory does not necessarily change their commercial origin, he said, according to EFE.
Which US Tariffs Hurt Mexico
“What hurts us are the Section 232 tariffs,” Medina Mora said, as quoted by EFE and Diario de México. Section 232 of a 1962 US trade law lets the president tax imports deemed a threat to national security.
The White House raised the Section 232 tariff on steel and aluminium imports from 25% to 50% from 4 June 2025, its fact sheet shows. The same tool covers cars and copper, the CCE chief said.
Mexican cars pay 25%, with a partial exemption for parts that meet the trade pact’s rules, The Mexican Times reported on 11 October.
Where the Talks Stand
The United States-Mexico-Canada Agreement, called the T-MEC in Mexico, has governed most North American trade since 2020. On 1 July Washington declined a 16-year extension, so the pact runs to 2036 with annual reviews, EFE reported.
Mexico and the United States have held three bilateral rounds in the review. The fourth, focused on US tariff cuts, still has no date, EFE and Diario de México reported on Monday.
On 5 October Medina Mora told UnoTV the round would take place in October. On Monday he said Mexico is close to a trade understanding, though a full treaty review will take longer.
“That is what we hope for, that it remains a trilateral treaty with bilateral agreements,” he said, according to EFE. Mexico’s economy secretary, Marcelo Ebrard, leads the talks for the government of President Claudia Sheinbaum of the left-wing Morena party.
On the same day, Sheinbaum said the talks show progress but no final deal, as reported in Mexico’s Sheinbaum Says No USMCA Deal Yet. Two days earlier, Donald Trump said he would make a new trade deal with Mexico and did not need Canada.
What It Means for You
For US investors and companies with Mexican plants, nothing changes yet: the tariffs stay in place for now. US tariff cuts on cars and steel would lower costs for automakers that build vehicles in Mexico, such as General Motors and Ford.
For US oil and gas producers, the proposal points to more sales south of the border. It is a business proposal, not a government decision, and no volumes were named.
What Prediction Markets Say
On Polymarket, bettors give a formal USMCA extension in 2026 a 9% chance, on about US$11,500 traded (13 October, 2:19 a.m. ET). Washington refused a 16-year renewal on 1 July.
Kalshi is a US exchange regulated by the Commodity Futures Trading Commission (CFTC). Bets there put the chance that Trump tries to leave the pact before 2027 at 22%, on about 13,800 contracts traded.
Why we show this: prediction markets turn real-money bets into a live probability that moves within minutes of the news, which is why investors, campaigns and newsrooms in the United States now follow them closely. We show them next to polls and official results, never instead of them.
What Is Not Known
Neither government has set a date for the fourth round, and Washington has not said whether it would grant US tariff cuts for energy purchases. Mexico’s government has not said whether it backs the oil idea.
The size of any extra fuel purchases, and their effect on Mexico’s own crude exports, were not specified. It is also unclear when the wider treaty review, which Medina Mora expects to take longer, will end.
More: Mexico news in English, every day from The Rio Times.
Frequently Asked Questions
What is the CCE in Mexico?
The Business Coordinating Council (CCE) is the umbrella body of Mexico’s large private-sector chambers. It marked its 50th anniversary on Monday and is led by José Medina Mora.
What are Section 232 tariffs?
They are US import duties imposed under a 1962 trade law on national-security grounds. Steel and aluminium have faced 50% since June 2025, and cars and copper are also covered.
Why does Mexico’s business lobby want to buy more US oil?
Medina Mora says President Trump focuses on the trade deficit. Buying more US crude, gas and fuels would shrink it and could help win US tariff cuts.
When is the fourth round of US-Mexico trade talks?
No date has been set for the round on US tariff cuts. On 5 October the CCE president said it would take place in October.
Sources: Diario de México, 12 October 2026; EFE via Infobae, 12 October 2026; The White House (fact sheet, Section 232 steel and aluminium), 3 June 2025; The Mexican Times, 11 October 2026; UnoTV, 5 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief