US trade rep: Trump tariffs on Mexico to stay

Source: msn.com

TL;DR

The story at a glance

U.S. Trade Representative Jamieson Greer met with Mexican auto, steel, and business leaders in Mexico City on April 21, 2026, stating that President Trump's tariffs on their sectors would remain despite upcoming USMCA renegotiations, according to four anonymous industry sources. He met groups like the Mexican Automotive Industry and National Chamber of the Iron and Steel Industry ahead of talks with Economy Minister Marcelo Ebrard. This comes as formal bilateral negotiations launch the week of May 25 toward a July 1 USMCA review deadline.[[1]](https://www.reuters.com/business/autos-transportation/us-trade-rep-tells-mexican-companies-trump-tariffs-here-stay-sources-say-2026-04-21)

Key points

Details and context

Greer held private meetings on April 21 with the American Chamber of Commerce of Mexico, Mexico's Business Coordinating Council, Mexican Automotive Industry, and steel industry chamber. A USTR spokesperson declined to comment on the discussions. The tariffs ended over three decades of duty-free North American auto trade under NAFTA and USMCA.[[1]](https://www.reuters.com/business/autos-transportation/us-trade-rep-tells-mexican-companies-trump-tariffs-here-stay-sources-say-2026-04-21)

Mexico's President Claudia Sheinbaum stated interest in a preliminary deal on steel and autos before full USMCA review. Industry head Rogelio Garza warned tariffs create disadvantage versus rivals with lower duties. More than 50% of Mexico's auto and steel exports go to the U.S., heightening exposure.[[1]](https://www.reuters.com/business/autos-transportation/us-trade-rep-tells-mexican-companies-trump-tariffs-here-stay-sources-say-2026-04-21)

Key quotes

"Greer said tariffs are here to stay. President Trump likes them. We will never go back to a zero-tariff world," said one of four industry sources who attended a meeting, speaking anonymously due to sensitivity.[[1]](https://www.reuters.com/business/autos-transportation/us-trade-rep-tells-mexican-companies-trump-tariffs-here-stay-sources-say-2026-04-21)

A second source from the auto industry meeting said there may be easing for competitiveness but "not going back to zero."[[1]](https://www.reuters.com/business/autos-transportation/us-trade-rep-tells-mexican-companies-trump-tariffs-here-stay-sources-say-2026-04-21)

Why it matters

Trump's tariffs signal a U.S. push to protect domestic manufacturing and tighten North American supply chains amid USMCA review. Mexican auto and steel firms face ongoing costs and job risks, with over half their exports U.S.-bound, potentially raising prices for North American consumers and disrupting integrated production. Watch formal talks starting May 25 and any rules-of-origin changes, though full resolution may extend past July 1.[[1]](https://www.reuters.com/business/autos-transportation/us-trade-rep-tells-mexican-companies-trump-tariffs-here-stay-sources-say-2026-04-21)

What changed

Before March 2025, USMCA and NAFTA allowed tariff-free trade in autos and parts across North America for over 30 years. Trump then imposed 25% Section 232 duties on global auto imports, including from Mexico, plus 50%/25% on steel, ending zero-tariff access. This occurred in March 2025, leading to Mexico's 3% export drop and 60,000 auto jobs lost in 2025.[[1]](https://www.reuters.com/business/autos-transportation/us-trade-rep-tells-mexican-companies-trump-tariffs-here-stay-sources-say-2026-04-21)

FAQ

Q: What tariffs did Greer address with Mexican industries?

A: Greer focused on Trump's 25% duties on auto imports and 50% on steel/aluminum commodities plus 25% on derivatives, telling groups they would not return to zero despite USMCA talks. Sources said he emphasized permanence to protect U.S. jobs. Auto tariffs hit since March 2025 under Section 232.[[1]](https://www.reuters.com/business/autos-transportation/us-trade-rep-tells-mexican-companies-trump-tariffs-here-stay-sources-say-2026-04-21)

Q: When do formal USMCA U.S.-Mexico negotiations start?

A: Greer and Economy Minister Marcelo Ebrard agreed to launch them the week of May 25, 2026, in Mexico City. Technical discussions continue this week on rules of origin and minerals. This follows a July 1 review deadline.[[1]](https://www.reuters.com/business/autos-transportation/us-trade-rep-tells-mexican-companies-trump-tariffs-here-stay-sources-say-2026-04-21)

Q: How have tariffs affected Mexico's auto sector?

A: Of 4 million vehicles made in 2024, 2.8 million went to the U.S., but exports fell nearly 3% in 2025 with 60,000 jobs lost. Industry president Rogelio Garza said it disadvantages Mexico versus Japan/EU at 15% duties.[[1]](https://www.reuters.com/business/autos-transportation/us-trade-rep-tells-mexican-companies-trump-tariffs-here-stay-sources-say-2026-04-21)

Q: What U.S. proposal came on auto rules of origin?

A: Negotiators suggested 100% North American content for engines, major electronics, and software, raising from current 75% regional value rule. This aims to curb offshoring and transshipment.[[1]](https://www.reuters.com/business/autos-transportation/us-trade-rep-tells-mexican-companies-trump-tariffs-here-stay-sources-say-2026-04-21)

[[1]](https://www.reuters.com/business/autos-transportation/us-trade-rep-tells-mexican-companies-trump-tariffs-here-stay-sources-say-2026-04-21)