Trump and Sheinbaum Advance Bilateral Trade Deal Before Midterms

President Donald Trump and President Claudia Sheinbaum held a series of phone calls on September 16 and 17 to advance a bilateral trade agreement. The discussions aim to reduce U.S. duties on Mexican steel and aluminum, currently at 50 percent, and automobiles and auto parts, currently at 25 percent. Both leaders seek to finalize a framework before the U.S. midterm elections on November 3.

These negotiations follow the U.S. decision on July 1, 2026, not to renew the U.S.-Mexico-Canada Agreement (USMCA) in its current form. While the U.S. and Canada remain in a trade war involving tariffs on dairy, motorcycles, and alcohol, Mexico has adopted a cooperative strategy to protect exports that are 80 percent dependent on the U.S. market. The U.S. is specifically pushing for stricter rules of origin to limit Chinese-made content entering the American market via Mexican supply chains.

Claudia Sheinbaum described the communications as very good and noted that while a final agreement is not yet closed, the two nations have reached some deals and are making progress on commercial issues. She emphasized that Mexico will not sign any agreement that jeopardizes its national sovereignty. The next formal round of bilateral talks, led by U.S. Trade Representative Jamieson Greer and Mexico's Economy Secretary Marcelo Ebrard, is scheduled for September 28–29 in Washington.