US to Start New Trade Talks With Mexico

The Trump administration stated on May 27 that it will begin a series of trade negotiations with Mexico this week tied to the first review of the U.S.–Mexico–Canada Agreement (USMCA), with no talks involving Canada announced so far.

The talks are part of the first formal review process for the U.S.–Mexico–Canada Agreement since it replaced the North American Free Trade Agreement in 2020.

The U.S. Trade Representative’s Office stated that the negotiations will focus on economic security, industrial rules of origin, agriculture, and maintaining what it described as a “level playing field” for U.S. workers and businesses. Rules of origin determine how much of a product must be manufactured within North America to qualify for tariff-free treatment under the trade pact.

The announcement made no mention of negotiations involving Canada, despite the agreement formally including all three North American countries.

U.S. Sen. Todd Young (R-Ind.) stated on X that the first review of the USMCA “will be a key test of whether the pact reinforces confidence in the North American market or creates more uncertainty.”

“The prices of fertilizer, fuel, and equipment, and whether corn, soybeans, and pork have steady buyers, all hinge on the outcome,” Young wrote.

He said that the USMCA “is not perfect” and that Mexico’s threats against U.S. corn products and Canada’s import controls on its dairy market “should be confronted directly.”

The United States expects tariffs to be part of trade negotiations with Mexico this week as officials begin discussions on renewing the USMCA, U.S. Trade Representative Jamieson Greer said on May 26.

Speaking at the Council on Foreign Relations in Washington, Greer said U.S. President Donald Trump remains concerned about the U.S. trade deficit with Mexico and indicated that tariffs would remain part of U.S. trade policy. He also said negotiators are expected to discuss increasing requirements for U.S.-made content in goods produced in North America.

Greer said Mexico has benefited from U.S. efforts to diversify supply chains away from China and said the administration wants a broader distribution of production. He said the United States wants more supply chains based in the Americas following shortages experienced during the COVID-19 pandemic.

Greer said negotiations with Mexico are expected to be productive but described trade talks with Canada as more difficult. Canada and China were the only countries that retaliated against the United States over tariffs.

U.S. officials said the negotiations are intended to strengthen North American manufacturing and reduce reliance on overseas supply chains.