Mexico says US trade talks continue despite Canada spat

Mexican President Claudia Sheinbaum said Monday that Mexico's trade talks with the United States were continuing despite Washington's tariff dispute with Canada.

Sheinbaum said Mexico's economy secretary was in Washington to negotiate a reduction of a 50% US tariff on Mexican steel, aluminum and other products, as well as a 25% tariff on vehicles.

“We have been working for more than a year now to see how these tariffs can be reduced,” Sheinbaum said at her daily press conference. “I'm optimistic,” she added.

Sheinbaum said the US-Canada tensions would not upend Mexico's negotiations with Washington and that Mexico wanted to be “in a better position” than it currently was.

Mexico, the United States and Canada are all parties to the USMCA regional free trade agreement. The agreement is critical for Mexico, with 80% of its exports going to the United States.

The comments came as US President Donald Trump was in a dispute with Canadian Prime Minister Mark Carney after Washington and Ottawa failed Friday to reach a deal to avert new 50% US tariffs on selected Canadian goods.

Trump on Monday doubled tariffs on Canadian vehicles starting next year, while Carney announced retaliatory tariffs on US goods effective September 8.

The USMCA is also under pressure. The United States rejected a 16-year extension of the agreement in July. The deal remains in force for another 10 years and will undergo annual reviews.