Mexico and the United States will hold a second round of USMCA review talks in Washington June 15–18, ahead of the July 1, 2026, evaluation date under Art. 34.7, with both governments signaling negotiations will extend beyond that deadline. The outcome will shape tariff exposure for Mexico’s steel, aluminum and automotive sectors, where 50% Section 232 tariffs have cut steel exports 36.6% and threaten up to 350,000 manufacturing jobs. Mexico is addressing 52 US trade demands while Canada pursues parallel bilateral agreements, adding complexity for exporters, automakers and investors across the US$2 trillion North American trade corridor.
Mexico will begin the second round of the review of the USMCA with meetings in Washington from June 15 to 18, Minister of Economy Marcelo Ebrard announced. The Mexican delegation will include Altagracia Gómez, Head of the Business Advisory Council and adviser to President Claudia Sheinbaum, Mexico’s new Ambassador to the United States, Roberto Lazzeri, and the Ministry of Economy’s negotiating team.
“We are already prepared, we have all the arguments and we will be over there, traveling from Sunday, Monday, Tuesday and Thursday. If you did not know, we will stay until Friday, and once we return, the President will tell us when we will share the details,” Ebrard said.
Only Mexico and the United States will participate in this USMCA round. Ebrard, who has prior experience negotiating the trade agreement with the United States, said the conversations are proceeding on schedule.
“Mexico has formal conversations established and a review process underway, which was a main objective, because at the beginning of these conversations it was not known whether we were going to have those formal conversations or not, or whether they would take place in due time and form,” he said.
July 1 Marks the Start, Not the End
Ebrard clarified that July 1 is not a deadline to conclude the review. “July 1 does not mean you finish the process. July 1 is established as a relevant date to formally begin the review. That is what it is for. So, what we are doing is preparatory work through these conversations rather than waiting until after July 1 to start the work. This is what the President asked of us and what was agreed with the United States,” he said.
Under Art. 34.7 of the USMCA, a scheduled evaluation is set for July 1, 2026. If all parties confirm their intent to continue, the agreement remains in force for an additional 16 years; if one party does not, the countries must conduct joint annual reviews for 10 years, after which the agreement expires, MBN reported.
Both governments have signaled that negotiations will extend beyond that date. US Trade Representative Jamieson Greer said, “I think we probably will not resolve all the issues by July 1,” adding that President Donald Trump “has made clear that he is dissatisfied with many of the outcomes of the USMCA,” citing increased US imports of vehicles, steel and aluminum produced in Mexico, according to MBN.
Despite recurring tariff threats in the bilateral relationship, Ebrard said Mexico holds a favorable position with the world’s largest economy. “I would say that the expectation we perceive in the international market is that the position Mexico has today is the best, if you compare it with all the other countries,” he said.
Issues on the Table
The Washington meetings build on earlier rounds held in both capitals. According to MBN, Mexico is working through 52 trade demands placed by the United States, while Mexico has presented 12 demands of its own. Mexico has also moved to align with US priorities by placing tariffs on 1,400 products targeting Chinese imports, part of a broader effort to reduce dependence on extra-regional sourcing and reinforce North American supply chains.
Tariffs remain a central variable. During the first formal negotiating round, Ebrard called the US Section 232 tariffs of 50% on steel and aluminum unsustainable, citing a 36.6% drop in Mexico’s steel exports to the United States in 2025 and a 5.1% year-over-year decline in automotive exports from January to April 2026, to US$48.638 billion. The tariffs have pushed Mexico’s steel capacity utilization to 55% and threaten up to 350,000 jobs in automotive manufacturing.
Mexico’s private sector has urged negotiators to preserve the framework. A consultation covering all 32 states and 573 companies and associations, based on 30 sectoral roundtables, found that 84% of participants rated the impact of the USMCA as positive or very positive, with priorities including the defense of existing rules of origin, free access to the regional market and stronger dispute resolution mechanisms, according to MBN.
Canada Pursues Bilateral Deals Alongside Trilateral Framework
Dominic LeBlanc, the Canadian minister responsible for Canada-US trade, announced that bilateral agreements with the United States will be signed in addition to the review of the trilateral pact.
“I expect we will reach bilateral agreements between Canada and the United States, and between the United States and Mexico, somewhat adjacent to the trilateral framework, if those agreements resolve the issues the three countries are trying to solve,” LeBlanc said at a conference in Toronto.
LeBlanc also plans to meet with Greer next week in France, on the sidelines of the G7 leaders’ summit. Canada has pursued a dual-track strategy, negotiating bilateral agreements with the United States on steel, aluminum and automotive tariffs alongside the formal USMCA process within the US$2 trillion North American trade corridor.
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