US-Mexico Trade Talks Launch Without Canada Amid Ongoing Tariff Disputes

The United States-Mexico-Canada Agreement (USMCA), which replaced the 1994 North American Free Trade Agreement in 2020, is slated for a three-round renegotiation led by the Trump administration’s trade agency. The talks aim to revise “economic security and rules of origin for key industrial goods” and address “a level playing field” for agriculture. The United States has maintained tariffs on Canadian vehicles, steel and aluminum imposed during the Trump era, and has signaled intent to keep certain tariffs on Mexican goods as well. Canada has not joined the bilateral process, citing unresolved differences over those tariffs.

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• Jeffrey Goettman – Deputy U.S. Trade Representative, leading the first bilateral talks in Mexico City.

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• Jamieson Greer – U.S. Trade Representative (USTR) official overseeing the negotiations, remained in Washington for a cabinet meeting.

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• Marcelo Ebrard – Mexican Economy Minister, coordinating with USTR staff on the talks.

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• Dominic LeBlanc – Canada-U.S. Trade Minister, noted for limited contact with Greer since early March.

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• Mark Carney – Canadian Prime Minister, referenced Canada’s procurement shift away from U.S. Boeing.

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• Brad Wood – Senior Director, National Foreign Trade Council, representing industry concerns.

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• May 27, 2026 – USTR announces the start of three negotiation rounds.

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• May 30-31 – First bilateral round in Mexico City (economic security, rules of origin).

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• June 16-17 – Second round in Washington, focusing on agriculture and a level playing field.

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• Week of July 20 – Planned third round in Mexico City to conclude discussions.

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• The USMCA and its predecessor NAFTA have underpinned roughly $1.6 trillion in trilateral trade.

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• Mexico cites a 50 % tariff on steel and aluminum as “unsustainable.”

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• The United States intends to retain “some level of tariffs” on both Mexican and Canadian goods under the revised agreement.

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USTR’s statement emphasized that the negotiations will ensure the USMCA benefits U.S. manufacturers, farmers, ranchers, workers, service suppliers, and businesses of all sizes, including small and medium-sized enterprises. Greer indicated that the United States seeks to enhance U.S. content in goods through stricter rules of origin, while also maintaining selective tariffs to protect the region from external competition, notably from China. Mexican Economy Minister Ebrard warned that the current 50 % steel and aluminum tariff is not sustainable and called for a systemic approach to automotive rules of origin. Industry representative Brad Wood urged that any changes to automotive rules of origin must not undermine sector competitiveness and should reflect global supply-chain realities.

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Mexico’s Ebrard challenged the feasibility of high tariffs on steel and aluminum, labeling them unsustainable. Brad Wood, speaking for the National Foreign Trade Council, warned that tougher origin rules could erode North American competitiveness. Canada’s limited engagement, highlighted by Greer’s remarks on Canada’s failure to accept U.S. vehicle, steel, and aluminum tariffs, underscores bilateral friction. Canadian provinces have removed U.S. liquor from shelves, and Prime Minister Carney noted Canada’s shift toward Swedish radar aircraft procurement, signaling broader discontent with U.S. trade measures.

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USTR asserts that selective tariffs will remain on Mexican and Canadian goods, yet Mexican officials describe the 50 % steel and aluminum tariff as unsustainable, revealing a direct policy disagreement. No specific details on the proposed U.S. tariff levels or phased implementation schedules have been disclosed, leaving a gap in understanding the precise impact on trade flows.

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• “The negotiations will focus on ensuring that the USMCA benefits U.S. manufacturers, farmers, ranchers, workers, and service suppliers, and businesses of all sizes, including our small and medium-sized enterprises,” — USTR statement

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• “I think that over the course of these negotiations, we are going to be talking about rules of origin in a way that enhances U.S. content in these goods,” — Jamieson Greer

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• “It's critical that we ensure further changes to automotive rules of origin do not undermine the sector’s competitiveness, especially considering that these rules were changed significantly during the last negotiation,” — Brad Wood

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The outcome will shape North American supply chains, affect tariffs on key industrial sectors, and influence the United States’ ability to shield its market from external competition, particularly from China. Divergent positions between the United States, Mexico, and Canada could recalibrate regional trade dynamics and impact billions of dollars in cross-border commerce.

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The second round in Washington (June 16-17) will address agricultural issues and the “level playing field,” followed by a final round in Mexico City (week of July 20) to finalize rules of origin and tariff structures. Stakeholders await concrete proposals that balance protectionist aims with the competitiveness of the North American industrial base.

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