Latest News

Mexico's 'cool-headed approach' to Trump's Tariffs has paid off

Mexico's "coolheaded" approach towards U.S. president Donald Trump's tariff offense has paid off with preferential treatment and a strong working relationship with Trump's trade team this week, Mexico's deputy economic secretary said on Thursday.

Luis Rosendo Gutierrez said that the undersecretary of international trade for Mexico, Luis Rosendo Gutierrez stated in an interview, that Mexican officials would meet with U.S. Trade Rep Jamieson Greer and Commerce Secretary Howard Lutnick next week to discuss U.S. Tariffs on Auto Imports, Steel and Aluminum, and their state.

The U.S., Mexico and Canada Agreement (which has been in place for nearly five years) will also be reviewed.

Gutierrez stated that "the instruction from President Claudia Sheinbaum is to work closely with the United States Government looking for fair and preferential treatments, and be cool-headed in doing so." "I think this strategy was the best. "To be close, constructive and to make proposals to the United States."

Mexico and Canada largely avoided Trump's 10% global baseline tariff on Wednesday, as well as the steeper "reciprocal" tariffs for many trading partners. Mexico still faces a 25% tariff on fentanyl, but the exemption for USMCA compliant goods has been extended indefinitely. If the fentanyl issue is resolved, these tariffs will fall to 12%.

Mexico is still subject to separate 25% tariffs on autos and auto parts, but without U.S. content. And 25% duties on steel imports.

Mexico, unlike Canada, has not taken retaliatory actions against U.S. imports as part of the trade dispute. Instead, it prefers to engage in a more constructive dialogue. Mark Carney, the Canadian Prime Minister, announced on Thursday limited countermeasures to about $25 billion of U.S. imported goods.

Gutierrez stated, "We would love to see these tariffs reduced." "We need to negotiate in order to try and improve conditions not only for Mexico but also for the United States. This idea will be complementary to our economies."

He said that at the meetings next week, Mexican officials will bring up USMCA letters that were agreed upon by Trump's previous administration. These side letters granted Mexico and Canada generous duty-free auto import quotas in case Section 232 tariffs on automobiles are imposed. Trump's administration does not plan to honor its commitments. (Reporting and editing by Sandra Maler, Chris Reese and David Lawder)

(source: Reuters)