U.S. Trade Representative Jamieson Greer delivered a stark message to Mexican business leaders this week: don’t expect upcoming trade negotiations to eliminate President Donald Trump’s tariffs on automotive and steel imports, according to four industry sources who attended the closed-door meetings.
During Monday discussions in Mexico City with leaders from Mexico’s automotive and steel sectors, Greer made clear that tariff relief would not be part of the upcoming U.S.-Mexico-Canada Agreement renegotiation process, which faces a July 1 deadline for its six-year review.
“Greer said tariffs are here to stay. President Trump likes them. We will never go back to a zero-tariff world,” revealed one meeting attendee, who requested anonymity due to the confidential nature of the talks.
The trade representative also indicated to automotive industry representatives that U.S. officials are examining potential assistance measures for Mexico, though he provided no concrete details, the source added.
This marks Greer’s first public indication that Mexican companies will need to adapt to ongoing tariff burdens even after this year’s trade agreement modifications are completed.
Both Mexico and Canada had anticipated using the USMCA renegotiation process to secure relief from the substantial duties Trump implemented last year, which have created significant challenges for manufacturers operating within North America’s interconnected economy.
A U.S. Trade Representative spokesperson refused to provide details about Greer’s private discussions.
Greer’s meetings included representatives from the American Chamber of Commerce of Mexico, Mexico’s Business Coordinating Council, the Mexican Automotive Industry association, and the National Chamber of the Iron and Steel Industry, among other organizations.
Mexican automotive and steel sectors maintain heavy reliance on U.S. markets, with over half of their exports heading north of the border, creating substantial vulnerability to tariff impacts.
The USMCA and its NAFTA predecessor had established more than thirty years of duty-free automotive trade between the three nations, until Trump implemented a 25% levy on global car imports last year, citing national security concerns under Section 232 of the 1962 Trade Expansion Act.
Trump has since negotiated reduced tariff rates with other trading partners: 15% duties on automotive imports from Japan, the European Union and South Korea, and 10% rates for Britain, creating a situation where some foreign vehicles face lower costs entering the U.S. market than Mexican-made cars.
A second meeting participant, who attended Greer’s session with Mexico’s automotive industry, confirmed the trade representative’s message that some level of tariffs would remain regardless of the ongoing USMCA review. This source indicated potential automotive tariff reductions might occur to maintain Mexico’s competitiveness with other regions, but emphasized Greer’s insistence that zero-tariff levels would not return.
The first source also disclosed that U.S. negotiators proposed during last week’s Washington meetings to modify origin rules requiring 100% North American sourcing for critical components including engines, major electronics and software. Current USMCA provisions mandate approximately 75% regional value content for vehicles, with specific U.S. or Canadian content requirements.
Regarding steel tariffs, two sources confirmed Greer delivered similar permanent tariff messages to Mexico’s steel industry, which currently faces 50% U.S. duties on basic steel and aluminum products, plus 25% duties on derivative goods containing at least 15% of these metals by weight.
Following Monday’s meetings, Greer and Mexican Economy Minister Marcelo Ebrard released a joint statement announcing formal bilateral negotiations beginning May 25 in Mexico City to address U.S.-Mexico USMCA issues.
The statement outlined continued technical discussions this week covering economic security, enhanced origin rules for key industrial products, critical mineral cooperation, and bilateral trade disputes.
Greer has championed Trump’s Section 232 tariffs as essential for restoring U.S. manufacturing employment after decades of factory relocations to Mexico, where labor costs remain significantly lower.
Mexican President Claudia Sheinbaum stated Monday, before meeting with Greer, that Mexico aims to reach preliminary agreements on steel and automotive duties prior to completing the USMCA review process.
Mexico’s automotive sector demonstrates heavy U.S. dependence, with American consumers purchasing 2.8 million of the 4 million vehicles Mexico produced in 2024, according to the Mexican Automotive Industry Association (AMIA). However, the industry has faced difficulties since Trump’s 25% tariff implementation in March 2025.
Following three decades of expansion, vehicle exports to the U.S. declined nearly 3% in 2025, AMIA reported. Association president Rogelio Garza has warned the decline will accelerate this year if tariffs remain. Government data indicates Mexico eliminated approximately 60,000 automotive industry positions last year.
“We cannot continue like this,” Garza previously told Reuters, highlighting Mexico’s sudden competitive disadvantage against key rivals.
