Finance · updated 1h ago · 3 min read
Mexico and the United States Intensify Talks for Interim Trade Deal Before November 3 Midterms
Negotiations accelerated to seal an interim US-Mexico trade deal before the November midterms. Six sources say both sides push to close the agreement before the U.S. elections.
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Tariffs and a deadline
Negotiations between Mexico and the United States are intensifying around a possible interim bilateral trade agreement before the November 3 midterm elections, with talks focusing on automotive and steel tariffs and aiming for an agreement before the legislative elections.
“Negotiations between Mexico and the United States are intensifying around a possible interim bilateral trade agreement”
Quartz en Français, citing Reuters, reported that the negotiations gained urgency after the collapse of trade talks between the United States and Canada last month, leaving the two long-standing neighbors in a growing tariff conflict.
A Mexico-based source told Reuters, “We both want to strike an agreement before the midterms,” adding, “Time is running out for the Mexican government,” as the Mexican Economy Ministry said “there are no specific deadlines at the moment.”
The thorniest issue in any agreement remains the Section 232 national security tariffs, which reach 50% for Mexican and Canadian steel and 25% for autos, while Reuters reported that Washington had reached separate arrangements with Japan, the European Union, South Korea and the United Kingdom at 15% and 10%, respectively.
How the talks are framed
Imagen Radio said six sources familiar with the deliberations described Mexico and the United States accelerating negotiations to close a bilateral trade agreement before the midterm elections in the United States scheduled in less than two months.
The outlet reported that the main objective of the working groups is to establish a provisional bilateral pact that would grant Mexico relief from certain tariffs imposed by the United States in exchange for addressing U.S. demands on automotive integration and control over capital of Chinese origin.
A source told Reuters, “There is mutual willingness to lock in an understanding before the elections,” while the Mexican source warned, “For the Mexican government, the room for maneuver is narrow,” citing weak economic performance and pressure on credit ratings.
Imagen Radio also said the signing would allow both leaders to claim a political win amid complex internal agendas, and that a spokesperson for Mexico’s Secretariat of Economy pointed out, “there are no rigid deadlines at this stage,” reaffirming willingness to maintain diplomatic channels with Washington.
Trump’s $5,000 promise
At the GOP’s midterm convention in Dallas, Donald Trump tied his campaign message to a “dividend” of $5,000 per person, saying, “If the Republicans win both the House of Representatives and the Senate, American adults would receive a $5,000 payment.”
““If the Republicans win, you win with us and you’ll receive $5,000.””
France 24 reported that the proposal’s cost could exceed a trillion dollars and would require approval from Congress, noting that Trump did not introduce a legislative bill and did not detail the procedure for making the payments.
The Los Angeles Times linked the political stakes to inflation and energy costs, saying wholesale inflation in the US rose last month after moderating earlier in the summer, as the surge in the cost of petroleum and gasoline stemming from the war with Iran keeps costs elevated.
In the same period, Trump told reporters, “Right after the elections, oil prices will crater,” and the Los Angeles Times reported that oil prices in the United States topped $100 a barrel on Thursday as fighting resumed and Trump intensified a trade war with Canada.