USMCA trade talks resumed this week as U.S. and Mexican officials opened a new round of discussions in Mexico City. The meetings come as President Donald Trump escalates pressure on Canada with new 50% tariffs on many Canadian goods.
The talks mark the first annual review process for the United States-Mexico-Canada Agreement. The trade pact took effect in 2020 and replaced NAFTA.
USMCA Trade Talks Begin New Review Phase
Technical teams from the United States and Mexico began work Tuesday, according to El País. Mexican President Claudia Sheinbaum is expected to meet Wednesday with U.S. Trade Representative Jamieson Greer.
The discussions are expected to cover rules of origin, labor issues, economic security and key industries. Those sectors include autos, steel, aluminum, agriculture and electronic payment services.
The U.S. Trade Representative’s office said earlier this year that the talks would focus on making sure the agreement benefits U.S. manufacturers, farmers, ranchers, workers and service providers.
Mexico has a major stake in the outcome. More than 80% of Mexican exports go to the U.S. market, according to El País. The country also remains one of the United States’ largest trade partners.
Mexico Pushes to Protect Tariff Advantages
Mexico wants to preserve its preferential access to the U.S. market. That access has helped support factories, cross-border supply chains and export growth.
Economy Secretary Marcelo Ebrard has said Mexico’s priority is keeping its tariff advantage over other countries. Mexican officials also want the review to bring certainty for businesses and investors.
The U.S. has raised concerns about its trade deficit with Mexico. Greer has said Washington wants any agreement with Mexico to address that imbalance.
Autos remain one of the most sensitive issues. Washington has pushed for more U.S. content in vehicles assembled in North America. Mexico also faces sector-specific U.S. tariffs on products including steel, aluminum, copper, autos and tomatoes.
Trump Targets Canada With 50% Tariffs
The Mexico talks began just after Trump announced new 50% tariffs on most Canadian goods. The Associated Press reported that the tariffs were imposed under Section 338 of the 1930 Tariff Act.
The White House said the tariffs will take effect in 30 days, leaving room for negotiations. They exclude energy products, potash, fish and critical minerals.
However, the tariffs would affect some goods that had previously received protection under USMCA rules. Trump said Canada discriminates against U.S. autos, alcohol and dairy products.
Canadian Prime Minister Mark Carney said Canada remains ready to negotiate. He also said the trade dispute has raised costs for families, especially in the United States.
North American Trade Faces Uncertainty
The U.S. decision not to renew USMCA for another 16 years has added uncertainty across North America. Instead, the agreement now faces annual reviews through 2036 unless the countries reach a longer-term solution.
For Texas businesses, the talks matter. Mexico is a key trading partner for the state, especially in energy, manufacturing, agriculture and logistics.
The outcome could affect prices, jobs and supply chains across the region. Border communities may feel those changes first because so much trade moves through ports of entry every day.
For now, Mexico is trying to keep talks moving while avoiding the sharper conflict now unfolding between Washington and Ottawa. The next steps will show whether North America’s trade partners can preserve stability under growing tariff pressure.