Mexico Pushes for Tariff Changes in USMCA Deal

The Mexican government is negotiating with the U.S. to reduce tariffs on North American vehicles in the USMCA agreement. Mexico's proposal suggests that U.S. tariffs should only apply to vehicle components made outside North America, allowing Mexican and Canadian parts to be duty-free.

The Mexican government is spearheading efforts to revise tariffs on North American automobiles as discussions intensify over modifying the U.S.-Mexico-Canada Agreement (USMCA), reported the Wall Street Journal on Wednesday.

According to unnamed sources, Mexico's proposal stipulates that U.S. tariffs should only be imposed on vehicle components manufactured outside North America. In contrast, parts produced in Mexico and Canada would benefit from duty-free status.

Reuters has yet to independently confirm the details of this report.