U.S. and Mexico Open Trade Talks in Mexico City Ahead of July Review
MEXICO · TRADE
Key Facts
—The talks: The first bilateral round of USMCA review talks opened in Mexico City on May 28 and continues on May 29, with deputy US trade representative Jeff Goettman leading the American delegation.
—The agenda: The first round focuses on economic security and rules of origin for key industrial goods, including the auto sector and other regulated supply chains across the North American market.
—The calendar: A second round is scheduled for June 16-17 in Washington on agriculture and a level playing field. A third round follows on July 20 in Mexico City, just before the July 1 joint review deadline.
—The tariff backdrop: Non-USMCA imports from Mexico face a 25 percent US tariff plus sectoral duties of 25 percent on steel, 10 percent on aluminum, 25 percent on autos and 20 percent fentanyl-related.
—Latin American impact: Mexican trade exposure shapes regional supply chains, near-shoring flows and Latin American commercial policy.
The first formal round of USMCA review talks opened in Mexico City on Thursday. Deputy US trade representative Jeff Goettman is leading the American delegation, with the agenda focused on economic security and rules of origin. The bilateral round runs through May 29 and sets the tone for a compressed negotiating window before the July 1 joint review deadline.
What this round of USMCA review talks covers
The opening agenda has two clear pillars. The first is economic security, a broad heading that covers critical minerals, semiconductors, energy and dependence on non-USMCA suppliers. The second is rules of origin for key industrial goods, a technical area that matters above all for the auto sector.
The auto rules are particularly sensitive. Existing USMCA content requirements demand 75 percent regional value content for passenger cars and light trucks. They also require 70 percent of steel and aluminum content to be sourced regionally and 40-45 percent of labor-value content from workers earning at least 16 dollars an hour.
Mexico’s economy ministry under Marcelo Ebrard has signaled flexibility on transparency, certification and audit. Mexican negotiators will resist any reopening of the headline content thresholds. They also want to preserve the existing duty-free access for USMCA-compliant goods.
The structure of the USMCA review talks
The USTR formally launched the joint review process in early May. The US-Mexico bilateral track is the most active line, with three formal rounds scheduled between May 28 and July 20. Canada participates in parallel through its own bilateral track with the United States.
The June 16-17 Washington round will focus on agriculture and what the USTR calls a level playing field. The latter language is a USTR shorthand for state subsidies, labor standards and currency practices. The July 20 Mexico City round will close out the bilateral agenda before the formal review date.
President Claudia Sheinbaum has stated repeatedly that Mexico sees no urgency around the July 1 date. She has framed the negotiations as continuing well past the joint review and as oriented toward removing US tariff layers on Mexican goods.
Tariff backdrop to the USMCA review talks
Mexico operates under a layered US tariff regime. Goods that meet USMCA rules of origin enter the United States duty-free. Goods that fail compliance face a 25 percent country-specific tariff that has been in place since the Trump administration revived sectoral duties in 2025.
The sectoral tariffs sit on top of the base rate. Steel imports from Mexico face 25 percent and aluminum imports face 10 percent.
Non-compliant autos and parts face 25 percent. A separate 20 percent surcharge targets goods deemed connected to fentanyl precursors and trafficking flows.
Mexico’s headline negotiating ask is the reduction or removal of these sectoral tariffs. Sheinbaum has told reporters that the United States is the destination for 83 percent of Mexican exports. That dependence frames the political stakes for both governments in any review outcome.
Industry voices and the USMCA review talks
Toyota has publicly warned against the introduction of country-of-origin content requirements that would replace the regional content rule. The company called the proposal a poison pill for Mexico in a Bloomberg Línea interview earlier this week. Other Asian and European automakers have echoed the concern privately.
USTR has signaled that any renegotiation will likely not include a drawdown of sectoral tariffs on the steel and auto industries. That stance complicates the Mexican domestic case for cooperation. Mexican industrial federations have urged Sheinbaum to hold the line on auto content thresholds.
The American Chamber of Commerce in Mexico has lobbied both governments for an extension framework rather than a renegotiation. Its general assembly in March featured US ambassador Ronald Johnson signaling continuity on trade. The Chamber has now positioned the bilateral relationship as essential infrastructure.
Regional read on the USMCA review talks
The outcome of the talks will be read across Latin America. Brazil watches with particular interest because any further US tightening on Mexican exports could divert investment flows. Brazilian agro-industrial exporters could pick up some US market share if Mexico’s auto-related volumes shift.
Argentina and Chile track the talks for their China implications. The USTR has used the review to press for content rules that exclude Chinese inputs and intermediate goods. Each Latin American economy with a free trade agreement with China faces parallel questions about reconciling such rules with its own commercial ties.
The Mercosur-European Union trade pact in force since May 1 also looms in the background. A more restrictive USMCA framework could push Mexican producers to look harder at European partnership terms. Mexico is already finalizing a trade agreement update with the European Union.
Frequently Asked Questions
Who is Jeff Goettman?
Jeff Goettman is the deputy US trade representative leading the American delegation in the bilateral rounds with Mexico. He reports to USTR Jamieson Greer. Goettman is the chief technical negotiator across the three rounds scheduled between May 28 and July 20.
What does economic security cover in this round?
Economic security in the USMCA review covers critical minerals, semiconductors, energy supply, and dependence on non-North American suppliers, especially Chinese inputs in regulated supply chains. It also addresses cybersecurity and infrastructure resilience.
When does the joint review deadline fall?
The USMCA joint review deadline is July 1, 2026. The three governments must decide whether to extend the agreement for another 16 years or to enter a different review track. Each member country has six years to renew unless extended.
What are the current US tariffs on Mexican goods?
USMCA-compliant goods enter the United States duty-free. Non-compliant goods face a 25 percent country-specific tariff. Sectoral duties add 25 percent on steel, 10 percent on aluminum, 25 percent on non-compliant autos and 20 percent on fentanyl-related goods.
Where does Canada fit in this round?
Canada is negotiating in parallel through its own bilateral track with the United States. The Carney government has criticized the US sectoral tariff regime on Canadian steel, autos and lumber. Canadian and Mexican negotiating positions overlap on rules of origin but diverge on energy and agriculture.
Connected Coverage
For more on Argentine policy direction see our piece on Milei’s growth message to investors. Also read our coverage of Colombia’s central bank autonomy ruling and our analysis of the Santiago security pact.
The Rio Times — Friday, May 29, 2026 — 03:00 BRT — By Sofia Gabriela Martinez
Key Topic · USMCA
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