Progress toward a U.S.-Mexico tariff deal has stalled as Commerce Secretary Lutnick opposes auto and steel tariff cuts, WSJ reports
What happened
Progress toward a U.S.-Mexico tariff deal has stalled after opposition from Commerce Secretary Howard Lutnick, the Wall Street Journal reported Thursday, citing people familiar with the talks. The two sides had been closing in on a deal that would reduce U.S. levies on steel, aluminum and automobiles in return for concessions from Mexico, but progress slowed over disagreements on the American levies on vehicles and metals. Lutnick has opposed significant reductions in the 25% tariff on Mexican automobiles and the 50% levies on steel and aluminum, and objected to reductions in tariffs on finished products made of steel and aluminum. Mexico's deputy trade minister Luis Rosendo Gutierrez told the Journal there was still progress in the negotiations, while a U.S. Commerce Department spokesperson said the department was in constant dialogue with Mexico — but the WSJ report indicates the near-term deal is off the table.
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Start your free 14-day trialWho’s affected
- Automakers with Mexican production (GM, Ford, Stellantis, Tesla) — continued 25% tariff on Mexican autos keeps cost pressure on cross-border vehicle supply chains. U.S. steel and aluminum producers (Nucor, Steel Dynamics, Cleveland-Cliffs, Alcoa) — keeping 50% metals levies protects domestic pricing but prolongs input-cost inflation for downstream manufacturers. Mexican-exposed manufacturers and suppliers more broadly — deal delay extends tariff uncertainty into the holiday production season.