Commerce Secretary Howard Lutnick is packing his bags for Mexico, where he's expected to sit down with President Claudia Sheinbaum and other top officials for some serious trade talk. The agenda? U.S. tariffs on Mexican autos and metals, among other things, according to a POLITICO report on Wednesday.
Lutnick will meet with Sheinbaum and Mexican Economy Secretary Marcelo Ebrard, but he's not the only one in the room. U.S. Trade Representative Jamieson Greer is also leading the review of these trade issues. However, Lutnick has been keen to keep the Commerce Department's grip on tariffs for U.S. auto, steel, and aluminum imports, which are big concerns for both Mexico and Canada.
Here's the interesting part: while U.S.-Canada trade talks have hit a wall, negotiations with Mexico on the USMCA's six-year review are actually moving forward. In fact, an interim agreement could be inked within weeks, the report says. "There's a lot of substantial progress on a lot of the things that the U.S. wants," a person familiar with the matter told the outlet.
The White House and the Commerce Department didn't immediately respond to requests for comment.
Mexico Seeks Tariff Deals With US
This isn't the first time Lutnick and Ebrard have crossed paths. Earlier this month, they met on the sidelines of a G20 innovation gathering in Chapel Hill, North Carolina, to talk trade and regional tech innovation. Sheinbaum said Ebrard was in the U.S. looking for tariff agreements, while also discussing bilateral trade and tech stuff with the Commerce Secretary.
And there's more on the horizon. According to a July USTR statement, the U.S. and Mexico are expected to hold a fourth round of USMCA review talks in Washington later this month, though no date has been set yet.
US-Canada Trade Tensions Rise
Meanwhile, things are getting chippy up north. On Tuesday, the Trump administration turned up the heat in the trade war with Canada by slapping new import bans on certain Canadian goods, including alcohol and dairy.
Lutnick reportedly shot down Canada's requests for concessions on metal and auto tariffs, which led Canadian negotiators to walk away from the talks. That triggered a 50% U.S. tariff, and Canada fired back with counter-tariffs that took effect Tuesday. Lutnick later said Canada left the table for political reasons, predicting they'd come back after the elections. He insisted the negotiations failed despite the U.S. offering favorable economic terms.
Canadian Prime Minister Mark Carney had a different take, saying the talks broke down because the U.S. demanded "dependency, not a true economic partnership."
So, while the U.S. and Mexico seem to be finding some common ground, the relationship with Canada is looking more like a cold war. It's a tale of two trade negotiations, and the outcomes could shape North American trade for years to come.
