U.S.-Mexico tariff talks stall over car and metals duties

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Commerce Secretary Howard Lutnick is resisting deep cuts to the 25% tariff on Mexican vehicles, the WSJ reports.

Progress toward a U.S.-Mexico trade deal has slowed over tariffs on cars and metals, according to The Wall Street Journal, as summarized by Quartz on Oct 16. Commerce Secretary Howard Lutnick has opposed steep cuts to the 25% levy on Mexican automobiles and the 50% tariffs on steel and aluminum, as well as lower duties on products made from those metals.

Autos are central to the talks. Mexico has proposed applying duties only to the share of a vehicle's value that comes from outside North America, rather than its full price. The U.S. has pushed for vehicles to contain 50% American-made parts as a condition for lower rates, a threshold Mexico and the auto industry have broadly viewed as impractical.

Officials in both countries say negotiations are continuing and reject the idea that talks are at a standstill. An interim deal would set the stage for broader talks on renewing the U.S.-Mexico-Canada Agreement. Mexican President Claudia Sheinbaum said her government is working to buy more American goods and curb imports from third countries.

Sources: Quartz · The Wall Street Journal