Mexico and the United States are working to reach a bilateral trade deal before the US midterm elections on November 3, according to Reuters, citing multiple sources in both countries familiar with the talks. The negotiations are aimed at an interim bilateral agreement under which Mexico could obtain relief from some US tariffs while addressing US demands in areas such as automotive content and Chinese investment, even as issues within the three-country USMCA pact continue to be negotiated separately.
According to the report, both governments see political benefits in reaching an accord before the elections, and Mexico’s administration views a deal as important for reassuring markets and investors following the presentation of its 2027 budget. A spokesperson for Mexico’s ministry of economy said there were “no specific deadlines at this time” while stressing the government’s continued commitment to dialogue with Washington. The effort has gained urgency after the recent collapse of trade talks between the United States and Canada, which reinforced Mexico’s strategy of avoiding direct confrontation.
Reuters reported that a central obstacle remains the Section 232 national-security tariffs on steel, aluminum, automobiles and auto parts, with negotiators discussing possible frameworks to lower effective vehicle duties in exchange for commitments on US content.
