Overview
U.S. Trade Representative Jamieson Greer told senior representatives of Mexico’s auto and steel sectors that President Donald Trump’s tariffs are not destined for elimination as part of this year’s review of the U.S.-Mexico-Canada Agreement (USMCA), according to four industry sources familiar with the meetings. The comments were made during a series of discussions in Mexico City intended to set priorities for revising the USMCA ahead of a July 1 deadline for the treaty’s six-year review.
Direct message on tariffs
Greer conveyed a clear message to the assembled business leaders: tariffs will remain a policy tool. "Greer said tariffs are here to stay. President Trump likes them. We will never go back to a zero-tariff world," one source who attended a meeting said. That individual, like three others who described the private conversations, requested anonymity because of the sensitive nature of the talks.
Industry participants included Mexico’s automotive and steel associations as well as broader business groups. Greer met with the American Chamber of Commerce of Mexico, Mexico’s Business Coordinating Council, the Mexican Automotive Industry and the National Chamber of the Iron and Steel Industry, among other organizations.
Assurances and limits
While assuring automakers that U.S. officials are considering ways to help Mexico adapt to the tariffs, Greer did not provide detailed measures or concrete commitments, according to one source who attended the auto industry meeting. Another attendee confirmed Greer’s central point: some level of tariffs will persist regardless of changes negotiated to the USMCA. That source added negotiators discussed potential easing of automotive duties to maintain Mexico’s competitiveness relative to rival markets, but reiterated that a return to zero tariffs was off the table.
Proposals on rules of origin
U.S. negotiators, at a recent bilateral meeting in Washington, proposed tightening rules of origin for vehicles. The suggestion would raise sourcing requirements for key components - specifically engines, major electronics and software - to 100% North American content. Under the current USMCA framework, vehicles must source roughly 75% of their value from the region, with specified shares required from the United States or Canada. The proposed adjustment would represent a significant tightening of local content requirements and is part of the talks Greer discussed with Mexican industry leaders.
Steel sector warnings
Greer delivered a similar message to Mexico’s steel industry. The sector is already subject to steep U.S. duties - a 50% tariff on commodity steel and aluminum products and a 25% duty on derivative goods that contain at least 15% of those metals by weight. Two sources confirmed Greer told steel executives that tariff levels are not returning to zero even as USMCA negotiations proceed.
Formal talks and technical discussions
Following the meetings, Greer and Mexican Economy Minister Marcelo Ebrard issued a joint statement announcing the launch of formal bilateral negotiations to address U.S.-Mexico issues within the USMCA. Those formal talks are scheduled for the week of May 25 in Mexico City. Both sides said they would continue technical discussions this week focusing on economic security, strengthened rules of origin for key industrial goods, collaboration on critical minerals and bilateral trade irritants.
U.S. rationale and Mexican aims
Greer has defended the Trump administration’s use of Section 232 of the Trade Expansion Act of 1962 to impose tariffs, arguing they are essential to restoring manufacturing jobs to the United States after decades of production shifts to lower-cost locations. Mexican President Claudia Sheinbaum told reporters on the day of the meetings that Mexico seeks a preliminary agreement on steel and automotive duties before the USMCA review concludes.
Market exposure and economic effects
Mexico’s automotive and steel industries are heavily dependent on U.S. demand. More than half of their exports are bound for the United States, leaving both sectors vulnerable to U.S. trade policy changes. The Mexican Automotive Industry Association (AMIA) reported that U.S. buyers purchased 2.8 million of the 4 million vehicles produced in Mexico in 2024. The sector has struggled since a 25% U.S. duty on global automotive imports was imposed in March 2025 under Section 232.
Since that duty took effect, vehicle exports to the United States declined nearly 3% in 2025, AMIA said. The association’s president warned that the drop could deepen if tariffs remain in place. Mexican government data show the country lost about 60,000 auto industry jobs last year, a development industry leaders have pointed to when urging relief.
Competitive shifts and tariff outcomes
After the initial 25% global automotive tariff, the U.S. negotiated lower rates with several trading partners: 15% tariffs on automotive imports from Japan, the European Union and South Korea, and a 10% tariff for imports from Britain. Those concessions have, in some cases, made it cheaper to ship cars from those regions to the United States than to ship from Mexico, according to industry participants who raised the competitive imbalance during talks.
Official responses and next steps
A spokesperson for the U.S. Trade Representative declined to comment on Greer’s private meetings. The two governments have signaled that formal negotiations will proceed in late May and that technical talks will continue in the near term. Areas on the agenda include economic security, tighter content rules for industrial goods, critical minerals cooperation and resolving bilateral trade irritants.
Implications for industry stakeholders
The conversations underscore the tension between Mexico’s desire to regain tariff-free access for key exports and the U.S. position that some level of tariffs is a permanent feature of its trade policy. For manufacturers and suppliers in Mexico that ship mainly to the United States, the message from U.S. officials is clear: the longstanding era of tariff-free automotive and steel trade among North American partners will not be fully restored, and companies should plan accordingly while monitoring the upcoming negotiations for any easing measures that could help maintain competitiveness.
Reporting for this piece was based on accounts provided by four industry participants who attended the meetings and on statements issued by the two governments about planned talks.