Mexico’s Sheinbaum Says No Deal in Trump Call, Talks Persist

Supply Lines is a daily newsletter that tracks global trade. .

Mexico’s President Claudia Sheinbaum said there’s no agreement yet with her US counterpart Donald Trump after the two spoke last week about lifting US tariffs.

The Mexican head of state said on Monday that they had discussed an existing 25% tariff on imported vehicles and an equivalent one on steel and aluminum.

“We didn’t reach an agreement but we did establish our arguments. In the case of steel and aluminum, we established that we have a deficit. The US exports more steel and aluminum to Mexico than Mexico to the US,” Sheinbaum said at her daily press briefing on Monday. “Our argument is that, just like in other cases, those goods that enter under the free trade agreement should have zero tariffs.”

Mexican officials have emphasized that their country has so far avoided tariffs on all its exports as Trump originally threatened, but Sheinbaum is looking to guarantee further protections for key sectors. She has stressed the value of the USMCA, the free trade agreement between Mexico, Canada and the US. A broader concern is whether international investors will continue to help drive the nation’s growth amid the uncertainty.

The fee on the small portion of goods that fall outside the free trade agreement could be up for further discussion with the Trump administration, Sheinbaum told press. She added that talks between high-level officials were ongoing after the call.

“There’s communication on the level of ministers of commerce and economy, and on the level of presidents,” Sheinbaum said.

Trump in a social media post last week had said the call with Sheinbaum was “very productive.” 

The US-made portion of finished vehicles remains exempt from the tariffs, and the Mexican Economy Ministry has said it aims for progress in talks before May 3, when levies specifically on auto parts are expected to take effect. 

Automakers including Stellantis NV Motor Corp had halted some production in Mexico when the duties went into effect in early April. Other carmakers said they would no longer be paying overtime. The industry is responsible for about 30% of Mexico’s total exports by Sheinbaum’s account, which mean broad tariffs could deal a huge blow to manufacturing in her first year in office. 

Both countries are also dueling over their shared use of water along the US-Mexico border and on whether Mexican growers are undercutting the prices of tomatoes.

The government has looked for ways to show it’s a willing partner with the Trump administration. At present, Sheinbaum’s diplomatic tactics have helped her approval rating remain at 83%, according to the latest El Financiero poll.

Sheinbaum’s government has not imposed reciprocal tariffs on the US, preventing a greater spat with Trump and winning her praise among some voters.

The Deputy Economy Minister for Foreign Trade Luis Rosendo Gutierrez has said Mexico would be satisfied with having a lower tariff than other countries, even if the rate is not brought down to zero. Most other US trade partners are now facing a 10% levy while they wait for the Trump administration to hash out who might face higher fees it had originally announced.

Earlier this year, Mexico also handed over high-level criminal actors to the Trump administration, including some accused of drug-trafficking, and had vowed to help stop the flow of migrants and fentanyl to the US.

This article was generated from an automated news agency feed without modifications to text.