On the Dash:
- A potential U.S.-Mexico trade agreement that could reduce tariffs on automobiles, steel, and aluminum has stalled, according to a Wall Street Journal report Reuters cited.
- Commerce Secretary Howard Lutnick reportedly opposes significant reductions to the 25% tariff on Mexican automobiles and the 50% levies on steel and aluminum.
- Mexico’s deputy trade minister said negotiations had made progress, while the U.S. Commerce Department said it remained in regular dialogue with Mexico, leaving the outcome uncertain.
The Wall Street Journal reported Thursday, citing people familiar with the talks, that progress toward a U.S.-Mexico tariff deal has stalled after opposition from Commerce Secretary Howard Lutnick. The two countries had been closing in on a deal that would reduce U.S. tariffs on automobiles, steel and aluminum in exchange for concessions from Mexico. However, disagreements over the tariffs on vehicles and metals have slowed negotiations.
According to the Journal, Lutnick opposed significant reductions to the 25% U.S. tariff on Mexican automobiles and the 50% tariffs on steel and aluminum. He also objected to lowering tariffs on finished products made from steel and aluminum. The standoff could delay tariff relief for automotive manufacturers and suppliers.
Officials from both countries pointed to continued engagement, with Mexico’s Deputy Trade Minister, Luis Rosendo Gutierrez, telling the Journal that negotiations had made progress. Meanwhile, a U.S. Department of Commerce spokesperson told the newspaper the department is in constant dialogue with Mexico on trade.
As the automotive industry awaits clarity on trade costs, the proposed agreement could lower tariffs on vehicles and key metals used in automotive manufacturing. The outcome of the negotiations remains uncertain as both countries continue to discuss tariff levels and potential concessions.