Mexico seeks US steel, auto tariff cuts

Mexico is seeking lower U.S. tariffs on steel, aluminum and vehicles as negotiations with Washington continue, Mexican Economy Secretary Marcelo Ebrard said Thursday.

Despite progress in bilateral ties and almost daily talks with U.S. Trade Representative Jamieson Greer, negotiations on reducing the tariffs imposed under Section 232 of U.S. trade law remain unfinished, Ebrard told a virtual news conference.

"Our focus has been on how to protect our businesses and jobs in Mexico when everything is changing," he said from Milwaukee, Wisconsin, while attending a meeting of G20 trade ministers.

The United States imposes a 25 percent tariff on imported passenger vehicles and light trucks, with qualifying Mexican vehicles eligible to have the duty assessed only on their non-U.S. content. Mexico and the United States are also in advanced talks to reduce or eliminate the 50 percent tariffs imposed by U.S. President Donald Trump's administration on Mexican steel and aluminum.

Ebrard said Mexico must watch for further measures from Washington, particularly those addressing trade and excess production capacity.

Asked about potential tariffs under Section 301 related to excess capacity, he said the issue was not raised at Thursday's bilateral meeting and that Mexico was awaiting Washington's decisions.

Preserving Mexico's position in the U.S. market remains a priority, he said. The United States accounted for about 85 percent of Mexico's non-oil exports in the first eight months of this year, according to official Mexican data.

Ebrard said defending Mexico's trade interests also require active participation in international forums as global trade rules shift and the United States and other economies consider new measures.