US and Mexico Plan Three Trade Talks, Excluding Canada

• Three bilateral negotiating rounds with Mexico are scheduled: May 27-28 in Mexico City (economic security and rules of origin), June 16-17 in Washington (agriculture), and the week of July 20 in Mexico City
• U.S. Trade Representative Greer stated the U.S. intends to maintain some tariffs on both Mexican and Canadian goods under USMCA, which previously created a tariff-free zone for over $1.6 trillion in trilateral trade
• Canada has been sidelined from negotiations after retaliating with its own tariffs on U.S. vehicles, steel and aluminum, and has announced plans to purchase fighter jets from Sweden's Saab rather than U.S.-based Boeing

US and Mexico Plan Three Trade Talks, Excluding Canada

The Trump administration's U.S. Trade Representative office announced three bilateral negotiating rounds with Mexico to revamp the USMCA trade agreement, while notably excluding Canada from discussions.

Key Details:

The first round begins Thursday-Friday this week in Mexico City, led by Deputy USTR Jeffrey Goettman, focusing on economic security and rules of origin for key industrial goods. A second round is scheduled for June 16-17 in Washington covering agriculture and "level playing field" issues, with a third round planned for the week of July 20 in Mexico City.

Canada Excluded:

Unlike the original USMCA negotiations which were trilateral, Canada has been shut out of current talks. USTR Jamieson Greer cited "significant" differences with Ottawa, particularly Canada's refusal to accept U.S. tariffs on vehicles, steel, and aluminum without retaliation. Canada and China remain the only countries to retaliate against U.S. tariffs, while Japan, South Korea, Taiwan, Britain, and the EU have negotiated concessions. Canada recently announced plans to purchase fighter jets from Sweden's Saab rather than U.S.-based Boeing, further straining relations.

Market Implications:

Greer confirmed the U.S. intends to maintain tariffs on both Mexican and Canadian goods, ending the tariff-free zone that has supported $1.6 trillion in trilateral trade. However, both countries could receive preferential treatment through deals protecting North America from external goods, particularly from China, via higher tariffs and stronger rules of origin for autos and industrial goods.

The shift toward bilateral rather than trilateral negotiations signals a fundamental restructuring of North American trade relations established over three decades.