U.S. warns tariffs will stay

The U.S. trade representative told Mexican auto and steel executives to stop expecting Trump-era tariffs to disappear in the next North American trade talks. (reuters.com) Reuters reported on April 21 that Trade Representative Jamieson Greer delivered that message in meetings with Mexican industry groups, citing four people familiar with the discussions. The report said the warning covered tariffs affecting autos, steel and aluminum. (reuters.com) The timing matters because the United States, Mexico and Canada are heading toward a review of the U.S.-Mexico-Canada Agreement, the trade pact that replaced the North American Free Trade Agreement on July 1, 2020. Mexican officials have been seeking an early understanding on steel, aluminum and autos before that review is completed. (congress.gov) (aol.com) For manufacturers, tariffs act like a tax at the border: importers pay extra when goods enter the United States, and that cost can reshape where companies build cars, stamp parts and buy steel. That is especially important in North America, where vehicle production crosses the U.S.-Mexico border multiple times before final assembly. (congress.gov) (usitc.gov) The steel and aluminum duties rest on Section 232 of U.S. trade law, which lets a president restrict imports on national security grounds. The White House said in an April 2026 proclamation that it was strengthening existing aluminum and steel tariff regimes first imposed in March 2018. (whitehouse.gov) Autos face a separate pressure point. A Federal Register notice said a 25% tariff on certain imported automobiles took effect on April 3, 2025, and a 25% tariff on certain imported auto parts took effect on May 3, 2025, while creating a process for vehicles that qualify for U.S.-Mexico-Canada Agreement preferences to document their U.S. content. (federalregister.gov) The trade pact itself already tightened the rules for cars. To qualify for duty-free treatment under the U.S.-Mexico-Canada Agreement, more of a vehicle and its core parts must come from North America than under the old North American Free Trade Agreement. (congress.gov) That leaves Mexican exporters facing two layers of pressure at once: stricter regional sourcing rules under the trade pact and separate U.S. tariffs that Washington is signaling will not be bargained away soon. Reuters said executives came away with the view that companies should plan around permanent trade friction, not a short-term dispute. (congress.gov) (reuters.com) Mexico has argued for a negotiated solution, and President Claudia Sheinbaum said on April 21 that broader talks with the United States were advancing positively. Washington’s latest message to industry suggests any deal is more likely to be about managing tariffs than removing them. (mexiconewsdaily.com) (reuters.com)