Mexico Says US Demands in USMCA Review Fall From 54 to 14

The number of issues the United States raised in its review of the USMCA has dropped from 54 to 14, Mexico's Ministry of Economy reported, days before a new round of technical talks scheduled for July 20 in Mexico City.

In a status update on the trade review, the ministry cited significant progress over recent months in negotiations with Washington, which is pressing for changes to the pact based on concerns over manufacturing job losses, supply chains, the trade deficit and economic security. 

Minister of Economy Marcelo Ebrard traveled to Washington to prepare for the coming round, where both sides aim to advance outstanding matters, define next steps and report results once the session concludes.

Mexico has presented 13 of its own trade concerns within the USMCA framework, according to the report. These include US tariffs on steel, aluminum and automotive products, trade restrictions in specific sectors, and the application of the Rapid Response Labor Mechanism. The ministry said these measures create obstacles to bilateral trade and require attention to preserve balance in the economic relationship.

Mexico's negotiating agenda centers on six priorities: preventing unilateral trade measures, resolving steel tariffs, protecting the competitiveness of the automotive industry and increasing certainty for investment across North America. The report also states that Mexico will seek to attract investment in strategic sectors such as semiconductors, pharmaceuticals, electronics and computing technology, with the goal of strengthening regional production capacity and reducing reliance on inputs from Asia.

"This mechanism was designed with a 10-year validity, so the incentive at each annual review is to reach an agreement. Last year we started with 54 items raised by USTR. Now, in the letter Ambassador Greer sent me a month ago, there are 14 points, and we have 13 things we would like to improve. Those figures show how the annual review works: each time you have fewer, because you are not going to raise the same issues you have already resolved. This first review, in July, is going to be very important, because itis unprecedented and it will also establish how the process is done. From there, you will have fewer topics every year, unless something extraordinary comes up. But from 2025 to 2026 we went from 54 to 14," said Ebrard.

Section 232 Tariffs Remain the Flashpoint

The tariffs Washington imposed outside the treaty under Section 232 continue to strain the relationship. Duties of 50% on steel and aluminum and 25% on automotive goods that fail to meet USMCA content thresholds cut Mexico's steel exports to the United States by 36.6% in 2025 and reduced automotive shipments 5.1% year over year in the first four months of 2026, to US$48.638 billion. The automotive decline threatens as many as 350,000 manufacturing jobs. Roughly 85% of Mexican goods bound for the United States currently enter tariff-free within a trade corridor valued at about US$2 trillion.

The formal review began July 1, when the three partners started the process built into the agreement to assess its performance six years after it took effect. Washington rejected an automatic 16-year extension proposed by Mexico and Canada, opting instead to keep the current calendar through 2036 under a scheme of annual evaluations. Mexico and Canada maintain that the mechanism should strengthen North American economic integration and improve certainty for trade and investment.

Sheinbaum Plays Down Uncertainty

President Claudia Sheinbaum said during her morning press conference that the US decision not to renew the pact for 16 years does not create investment uncertainty in Mexico. "There is no uncertainty. Of course what we wanted was 16 years. Given that the United States government decides on only 10 years, we have to agree during these 10 years on how the treaty will continue," she said.

Sheinbaum said she expected Washington's position to shift over time. "I truly believe it will be renewed for another 16 years, even if it happens within four or five years, because the economic integration is enormous," she said.

The government has paired the review with an import-substitution push in pharmaceuticals, semiconductors and automotive manufacturing. General Motors plans to build in Mexico models it currently imports from Asia, including the Aveo, between 2026 and 2028. The strategy unfolds as private analysts trim Mexico's 2026 growth outlook, with IMEF projecting 1.1% and BBVA 1.2%. The Ministry of Economy, however, has disputed these forecasts.