Mexico · TRADE
Key Facts
- —Timing Ebrard praised progress on Friday 21 August 2026, hours before US-Canada talks collapsed and 50% tariffs took effect at 12:01 a.m. ET on 22 August.
- —Tariff scope The US tariffs apply only to Canadian goods, not Mexican goods, under three presidential proclamations signed 20 July 2026.
- —Mexico’s ask Mexico wants Washington to lift or reduce existing tariffs and impose no new ones during the USMCA review.
- —Trade figures Mexico’s total merchandise exports hit a record US$664.837 billion in 2025, up 7.6% from 2024.
- —US dependence In 2025, 83.7% of Mexico’s non-oil exports went to the United States.
Mexico’s economy chief set Canada as the benchmark for trade talks on the same day the US-Canada negotiations collapsed and new US tariffs took effect.
The Mexico USMCA review now carries a warning it did not have on Friday morning. Mexico’s economy secretary, Marcelo Ebrard, said that day that Mexico expected terms similar to Canada’s.
That same night the talks with Canada collapsed, and 50 percent tariffs on Canadian goods took effect.
Ebrard’s Optimistic Words
However, on Friday 21 August 2026, Mexico’s economy secretary, Marcelo Ebrard, said he thought they would achieve similar things. He did not comment on the failing US-Canada trade talks.
The next day, Saturday 22 August, Ebrard focused on the trade review itself. He said, ‘We are glad it is so, because that dialogue had not existed before.
there is a lot of progress and I have a reasonable, optimistic expectation. However, Ebrard’s remarks came as the US-Canada talks were collapsing.
Meanwhile, he did not address the Canadian situation directly. However, Ebrard’s optimism was not shared by the United States and Canada, whose talks collapsed that same night.
Meanwhile, his remarks were made before the collapse became public.
The Collapse and Tariffs
US-Canada trade talks collapsed late on Friday 21 August 2026. Hours later, at 12:01 a.m. Eastern Time on Saturday 22 August, the 50% tariffs on Canadian goods took effect.
Although the tariffs were originally set for 19 August, a presidential proclamation suspended them until 22 August. They now apply to goods entered for consumption on or after that moment.
As a result, the suspension expired hours after the talks failed. Still, the tariffs now apply to Canadian goods only, not Mexican ones.
Because the talks failed, the suspension of the tariffs expired as scheduled. As a result, the 50 percent duties took effect on Canadian goods at 12:01 a.m. Eastern Time on 22 August.
Mexico USMCA Review Goals
In short. Mexico’s position in the USMCA review is clear: Washington should lift or reduce tariffs and impose no new ones while talks run.
Ebrard said, ‘We have proposed that while the talks around the review last, there be no further imposition of tariffs. Specifically, Mexico has asked the US to remove or reduce tariffs on Mexican cars and steel.
A Mexican delegation has lobbied in Washington on the same point, asking for no new tariffs during the review. In addition, Mexico has asked for no new tariffs during the review.
Because of this, the delegation’s request aligns with Ebrard’s stated position. In addition, Mexico wants no new tariffs during the review, a point made by Ebrard and the delegation.
While the talks continue, Mexico seeks to avoid further duties on its exports.
What the US Tariffs Cover
The US tariffs, imposed through three proclamations signed 20 July 2026, cover alcoholic beverages, dairy, and motor vehicles from Canada. They add a 50% ad valorem duty, meaning a percentage of the goods’ value.
Goods affected include wine, hockey sticks, cement, dairy products, furniture, swimming pools, fishing rods, seeds, clothing, and wigs. In addition, energy, potash, and some other goods are exempt.
While the tariffs target Canadian goods, they exclude energy and potash. However, they include items like wine and hockey sticks.
Although the tariffs cover many goods, they exclude energy and potash. Meanwhile, the stated purpose is to offset Canada’s discrimination against American products.
US Figures on Tariff Value
The Office of the United States Trade Representative says the tariffs affect about US$20 billion worth of US imports from Canada. Separately, the Federal Reserve Bank of Chicago calculated the 50% rate applies to 569 categories, capturing nearly US$24 billion.
These are separate measurements from separate bodies. The tariffs respond to Canada’s alleged discrimination against American autos, dairy, and alcohol.
Meanwhile, the USTR’s figure of US$20 billion differs from the Chicago Fed’s nearly US$24 billion. Still, both measure the same tariffs on Canadian imports.
However, the USTR’s US$20 billion figure and the Chicago Fed’s nearly US$24 billion are separate measurements. Still, both reflect the same tariffs on Canadian imports.
Canada’s Response
Canada has announced retaliation, but no legal measure has been documented. Still, a report said retaliatory tariffs would take effect on 8 September 2026, but it came three days before the talks collapsed.
However, a search of Canadian sources found no order setting a retaliatory rate. Canada’s most recent official statement describes seeking relief from tariffs, not imposing them.
Although Canada has vowed to match the duties, it has published no legal instrument. The 8 September date comes from a news report, not from a Canadian order.
Ottawa has announced retaliation, but so far it exists only as an announcement. Until an order is published, nothing has been imposed on American goods.
Mexico’s Trade Record
Mexico’s total merchandise exports reached a record US$664.837 billion in 2025, up 7.6% from the previous year. The country posted a trade surplus of US$771 million for the year.
In 2025, 83.7% of Mexico’s non-oil exports went to the United States, according to Xinhua. This shows how much Mexico depends on its northern neighbor.
However, the 83.7% figure applies only to non-oil exports. Meanwhile, Mexico’s total exports hit a record high in 2025.
Because 83.7 percent of Mexico’s non-oil exports go to the United States, the US market is vital. However, the total export figure includes all goods, not just non-oil.
Leaders’ Dialogue
Meanwhile, President Claudia Sheinbaum and Canadian Prime Minister Mark Carney spoke by telephone on Thursday 20 August 2026. Both defended the T-MEC, the trade agreement known as USMCA in English.
On Friday, as Canadian talks failed, Donald Trump said he was starting a new agreement with Mexico. He said, ‘We are also beginning a new agreement with Mexico.
A much better agreement for the United States. After the call, Trump announced a new agreement with Mexico.
Still, he made no promise of a deal or tariff exemption. Meanwhile, the call between Sheinbaum and Carney came a day before the US-Canada talks collapsed.
Although Trump mentioned a new agreement with Mexico, he made no promises.
What’s Next for Mexico
Mexico’s economy ministry has opened a 60-day period to collect comments ahead of the 2026 review. This shows Mexico is preparing for the Mexico USMCA review process.
Ebrard declined to give a date for a deal, saying it would be irresponsible. Still, he expressed a ‘reasonable, optimistic expectation’ of substantive agreements.
Since the review is ongoing, Mexico is collecting public comments. However, Ebrard gave no date for a final agreement.
Since the review is ongoing, Mexico is collecting comments from the public. However, Ebrard gave no date for a final agreement, citing responsibility.
Frequently Asked Questions
What is the Mexico USMCA review?
The Mexico USMCA review is the joint review of the trade agreement known as T-MEC in Spanish. USMCA in English, and CUSMA in Canada.
Do the 50% US tariffs apply to Mexico?
No, the 50% tariffs apply only to Canadian goods, not Mexican goods. They were imposed through three proclamations signed on 20 July 2026, covering alcoholic beverages, dairy, and motor vehicles from Canada.
When did the 50% tariffs take effect?
The tariffs took effect at 12:01 a.m. Eastern Time on Saturday 22 August 2026. They were originally set for 19 August but were suspended until 22 August by a presidential proclamation.
What is Mexico’s position in the trade review?
Mexico has proposed that no new tariffs be imposed while the review talks last. It has also asked the US to remove or reduce tariffs on Mexican cars and steel.
Connected Coverage
Sources: La Jornada; Reuters; El País; El Financiero; Infobae Mexico; NBC News; Axios; CBC News; Chicago Fed; INEGI; White House; US Customs and Border Protection; Global Affairs Canada.
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