Mexico's Economy Minister Ebrard Seeks Favorable Trade Terms Ahead of Critical USMCA Review

Mexico Prioritizes Favorable Trade Conditions Amidst New U.S. Tariffs

Mexico City, Mexico – Mexico's Economy Minister, Marcelo Ebrard, announced on Tuesday that the Mexican government is actively pursuing the most favorable trade conditions possible in response to new tariff measures implemented by the United States. Speaking at a meeting of the Business Coordinating Council, Ebrard highlighted the ongoing efforts by trade representatives from both nations to address bilateral differences, particularly as the critical 2026 review of the United States-Mexico-Canada Agreement (USMCA) approaches.

Ebrard, who assumed the role of Secretary of Economy on October 1, 2024, under President Claudia Sheinbaum, stated that a primary objective is to 'reduce or offset the impact of tariffs announced by U.S. President Donald Trump through discount schemes that would benefit Mexican exports.' He further asserted, 'Our ultimate goal is to ensure that Mexico's conditions are better than those of any other country.'

U.S. Tariff Policies and Their Impact

The push for favorable terms comes in the wake of significant U.S. trade policy shifts. Effective August 1, 2025, U.S. President Donald Trump announced a 30% flat tariff on all goods imported from Mexico and the European Union, citing concerns over trade imbalances and fentanyl trafficking. This policy maintains a separate 25% tariff on automobiles. Earlier in February 2025, executive orders were signed imposing 25% tariffs on most goods from Mexico and Canada, though exemptions for USMCA-compliant goods were later introduced. Mexico is also seeking exemptions from broader U.S. tariffs on steel and other products.

These measures have prompted Mexico to prepare a comprehensive revision of its tariff policy for 2026, with the scope of changes dependent on the evolving trade relationship between the United States and China.

The High Stakes of the 2026 USMCA Review

The upcoming 2026 USMCA review, scheduled for July 2026, is a mandatory six-year assessment designed to evaluate the agreement's performance and determine its future trajectory. The USMCA, which replaced NAFTA, came into force on July 1, 2020. This review presents a pivotal moment, as a consensus among the three member countries could lead to an extension of the agreement for another 16 years, until 2042. Conversely, a lack of agreement could trigger annual reviews, potentially leading to the agreement's expiration in 2036.

Mexico views this review not as a threat, but as a strategic opportunity to solidify its position as a leading emerging economy and reduce economic uncertainty. Mexico's strategy includes:

• Strengthening rules of origin, particularly in the automotive sector.
• Improving the Rapid Response Mechanism under the USMCA labor chapter.
• Promoting the integration of value chains across North America.
• Potentially including a specific chapter on the semiconductor industry to attract high-tech investment.

Ongoing Dialogue and Future Outlook

Minister Ebrard indicated that discussions with Washington are 'very advanced,' with both sides having identified the specific costs associated with recent U.S. measures. The immediate goal is to eliminate as many 'irritants or potential disputes' as possible before November. While acknowledging the 'complex' nature of the USMCA review, Ebrard expressed confidence in the 'solid understanding' maintained between Mexico and Washington, noting that approximately 80% of current talks are technical, focusing on data analysis and impact modeling.

The U.S., under the Trump administration, is expected to advocate for modifications during the review, including stricter automotive rules of origin, enhanced prohibitions against forced labor, and new restrictions on Chinese companies operating within North America. The U.S. has also linked its trade policy to non-trade issues such as fentanyl trafficking and immigration.