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Mexico continues negotiations with US for tariff exemption on steel and auto exports

Mexican President Claudia Sheinbaum announced on Monday that her country has not yet reached an exemption agreement on US tariffs on steel and automobile exports, but that talks are ongoing.

Mexico continues negotiations with US for tariff exemption on steel and auto exports

Mexico, Latin America's second-largest economy, is considered one of the most vulnerable to shifts in Washington's global trade policies as it exports around 80% of its exports to the United States.

Sheinbaum described his phone call with US President Donald Trump last Wednesday as “productive” and emphasized that the parties were continuing their contacts to reach an agreement. “No agreement has been reached yet, but communication is ongoing,” Sheinbaum stated at a press conference in the morning.

Although Trump this month removed Mexico from the list of countries facing “reciprocal tariffs,” the automotive industry and steel and aluminum exporters still face tariffs.

Sheinbaum noted that Mexico has proposed zero tariffs on steel and aluminum exports that fulfill their obligations under the free trade agreement with the US and Canada. He also noted that the US has presented data showing that Mexico exports more steel and aluminum than it sells to the US.

Sheinbaum refrained from going into details on the automotive sector, noting that Trump's decision to impose a 25% tariff on imported foreign-made vehicles has severely affected the sector. He stated that they are working on proposals for this critical sector, but they will not make a statement for now.

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