Lutnick Pursues Mexico Trade Deal Amid Canada Stalemate

Discussions with Canada have hit a roadblock due to Lutnick's resistance to concessions on auto and steel/aluminum tariffs. This stance led Canadian negotiators to withdraw from talks, resulting in a 50 percent U.S. tariff and subsequent counter-tariffs imposed by Canada that took effect Tuesday.

In contrast, negotiations with Mexico on the USMCA's six-year review are advancing more smoothly. Sources suggest an interim agreement could be reached within weeks, potentially resolving U.S. tariffs on metals and autos that were implemented last year citing national security concerns. One individual familiar with the discussions noted substantial progress on U.S. priorities.

As an example of progress, Sheinbaum submitted a proposal to the Mexican legislature to establish a foreign investment screening mechanism, a measure U.S. officials have sought to prevent foreign adversaries from investing in critical industries near the U.S. border. Separately, Ebrard met with Lutnick earlier this month to discuss trade and regional technological innovation. A fourth bilateral negotiating round on the USMCA review is anticipated in Washington, D.C., though a specific date has not yet been announced.