Mexico and the United States are racing to strike an interim bilateral trade deal before the Nov. 3 U.S. midterm elections, according to six sources in both countries familiar with the talks, Reuters reported Friday.
Officials see political benefits for President Donald Trump and Mexican President Claudia Sheinbaum if they can announce tariff relief and investment rules before voters go to the polls. “We both want to reach a deal before the midterms,” one Mexico-based source said.
The push accelerated after U.S.-Canada talks collapsed last month and Washington this week banned a broad swath of Canadian alcohol, motorcycle, and dairy imports. Mexico sends more than 80% of its exports to the United States and has pursued a more conciliatory track than Ottawa.
U.S. Commerce Secretary Howard Lutnick met virtually with Sheinbaum on Thursday. A major sticking point remains Section 232 tariffs of 50% on Mexican steel and 25% on vehicles. Automakers expect a possible framework similar to one discussed with Canada: about 15% on vehicle imports, with further cuts tied to U.S. content. Mexico this month floated investment-screening powers widely seen as answering U.S. pressure over Chinese capital.
Sources: Reuters, Globe and Mail
