Mexico Gains Preferential Tariff Treatment from U.S. Amid Trade Talks

Mexico’s measured response to U.S. tariff threats under President Donald Trump has paid off with preferential treatment and stronger ties with Washington’s trade team, according to Deputy Economy Secretary Luis Rosendo Gutierrez. In an interview with Reuters, Gutierrez emphasized the importance of Mexico’s “cool-headed” approach, driven by President Claudia Sheinbaum’s directive to pursue constructive dialogue over confrontation.

Mexico, along with Canada, avoided Trump’s new global 10% tariff baseline and harsher “reciprocal tariffs” applied to other nations. However, Mexico still faces 25% tariffs on auto parts and vehicles not compliant with U.S. content rules, as well as 25% duties on steel. A fentanyl-related 25% tariff remains, although goods compliant with the U.S.-Mexico-Canada Agreement (USMCA) are indefinitely exempt, and the rate could drop to 12% if the fentanyl crisis is addressed.

Gutierrez announced upcoming trade meetings with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer. Discussions will focus on steel, aluminum, auto imports, and a five-year review of the USMCA, the cornerstone of North American trade.

He highlighted Mexico’s commitment to collaboration over retaliation, contrasting it with Canada’s move to impose limited countermeasures on $25 billion in U.S. goods. Gutierrez stressed the need for balanced negotiations, aiming to improve trade conditions for both nations while strengthening economic ties.

Mexican officials will also press the U.S. to honor USMCA side letters signed under Trump’s first administration, which promised duty-free automotive quotas if Section 232 tariffs were enacted. So far, the current U.S. administration has shown no intent to honor those provisions.

Gutierrez concluded, “We seek to complement—not compete with—the U.S. economy.”