On Monday, Mexico announced its intention to purchase more goods from the U.S. while reducing imports from China, aiming for a trade agreement with the Trump administration.
During a press conference, Mexican President Claudia Sheinbaum expressed that Mexico would be increasing its buy from the U.S. to address America’s trade deficit concerns. This effort comes as Mexico negotiates the future of the U.S.-Mexico-Canada Agreement (USMCA), with discussions between Washington and Canada currently stalled due to previous tariff disputes.
Sheinbaum noted, “The United States is asking for its so-called trade deficit to be reduced.”
In addition, Mexico has begun implementing tariffs up to 50% on various imports from countries lacking free-trade agreements, including China. These tariffs, initiated at the start of 2026, affect items like automobiles, auto parts, textiles, steel, and appliances.
This move coincides with a broader U.S. initiative aimed at minimizing China’s influence in North American supply chains. The USMCA review process, which kicked off in March, has focused on decreasing reliance on external imports and reinforcing regional supply networks.
Since then, discussions between the two nations have included topics like economic security and rules of origin concerning steel, aluminum, and automobiles. U.S. Trade Representative Jamieson Greer mentioned that they are looking to bolster North American manufacturing and tackle issues where other countries benefit without contributing.
Mexico’s stance appears to diverge from that of Canada, where Prime Minister Mark Carney’s administration halted trade negotiations with the U.S. in August after failing to reach an agreement.
This led to the U.S. imposing 50% tariffs on about $20 billion worth of Canadian goods, to which Canada retaliated with counter-tariffs that went into effect on September 8.
Sheinbaum indicated that her government is still “working towards” a trade deal with President Trump, seeking reductions in U.S. tariffs on key Mexican exports like steel, aluminum, and automobiles.
Although the Trump administration opted not to renew USMCA in its present form during the July joint review, the agreement still stands as negotiations proceed. Greer reaffirmed the commitment to continue talks with Mexico and Canada regarding the agreement’s issues and the trade deficits both countries have with the U.S.
A recent analysis from the Center for Strategic and International Studies pointed out that increasing Mexican purchases of U.S. agricultural, energy, and manufactured items could be one way for Washington to decrease the trade deficit between the two countries.
It also highlighted the potential for significant shifts in Mexico’s trade dynamics outside of North America if it aligns more closely with U.S. tariffs and regulations affecting nonmarket economies, particularly China.
Trump originally brokered the USMCA with Mexico and Canada during his first term, aiming to replace the North American Free Trade Agreement (NAFTA). The three nations signed the USMCA in November 2018, followed by Trump’s endorsement of its implementing legislation in January 2020, with the agreement coming into effect on July 1, 2020.
