U.S. and Mexican negotiators convened in Mexico City on July 21 for a third round of bilateral trade talks, launching the first annual review of the USMCA with Canada excluded from the proceedings. The U.S. delegation, led by Trade Representative Jamieson Greer, will discuss automobiles, steel, agriculture, and economic security through Thursday.
Washington declined to renew the pact for another 16 years, triggering a mechanism under which the agreement will expire in 2036 if consensus is not reached. Mexico's new ambassador to the U.S., Roberto Lazzeri, said Mexico expects a deal by the end of 2026. Greer praised Mexico's pragmatic approach and its decision not to retaliate against U.S. tariffs of 25% on Mexican automobiles and 50% on steel and aluminum.
A meeting between Mexican President Claudia Sheinbaum and Greer is set for July 22. The U.S. trade deficit with Mexico surpassed $81 billion in early 2026, while Washington imposed separate 50% tariffs on most Canadian goods.