Mexican President Claudia Sheinbaum said today that the United States and Mexico are "very close" to finalizing a new trade agreement, though disagreements over tariffs continue to block a final deal.
Sheinbaum made the declaration during a press conference in Mexico City, signaling progress after months of intense negotiations. She said tariffs on steel and aluminum imports from Mexico—imposed under President Donald Trump's administration—remain a significant obstacle. Mexican officials have argued the duties disrupt integrated supply chains and harm domestic industries that rely on cross-border trade.
Trump has maintained the tariffs are necessary to protect U.S. manufacturing jobs and national security. U.S. Trade Representative Katherine Tai has led the American negotiating team, pushing for stronger enforcement mechanisms for labor and environmental standards. For Trump, keeping the tariffs is central to his "America First" trade agenda, which appeals to his industrial base.
A deal would affect trade worth over $800 billion annually. U.S. farmers rely heavily on Mexican markets for exports, while Mexican factories are integrated into American manufacturing, especially along border states. Resolving the tariff dispute could unlock investment, streamline cross-border commerce, and ease inflationary pressures for consumers in both nations.
Negotiators are expected to meet again in Washington next month to address outstanding tariff issues. Officials from both countries expressed optimism that a resolution is achievable before year's end.
