Trump and Sheinbaum say a trade deal is close, with no terms
Trump says the trade deficit could fall "to zero"; Sheinbaum wants lower tariffs on cars, steel and aluminum and admits issues remain.
The United States and Mexico are "very close" to a trade deal, President Claudia Sheinbaum said Tuesday, a day after President Donald Trump floated it at a rally.
Trump spoke in Kansas of cutting the trade deficit with Mexico "to zero" and said his country would no longer lose $150 billion in that trade. The figure is his own, not an official statistic. He did not say whether the pact has anything to do with the review of the USMCA, the three-country trade agreement known in Mexico as the T-MEC.
Sheinbaum was more cautious at her morning press conference: "We are very close, there are still some issues." She wants tariffs on cars, steel and aluminum cut as far as possible.
She ruled out any commitment that would violate the Constitution or hurt the economy and jobs.
Cars now pay a 25% tariff and steel and aluminum pay 50%, figures Economy Secretary Marcelo Ebrard laid out for the Chamber of Deputies on Friday, Oct. 16. Mexico proposes lowering the car rate to 15%, the level Ebrard says Washington applies to South Korea.
A deal like that would change what it costs to export Mexican manufactured goods to the United States. For now there is no text, no rates and no closing date, and what Trump said came from a campaign event.
Ebrard said Monday he expects a proposal from Washington before the end of 2026.
