Mexico and the U.S. begin their second round of USMCA review negotiations on April 20, 2026, focusing on automotive, steel, aluminum, and agriculture to strengthen North American supply chains. With the July 1, 2026, review deadline approaching, Mexico has imposed tariffs on ~1,400 non-FTA products and is addressing 52 U.S. demands—while the U.S. cites dissatisfaction with vehicle, steel, and aluminum imports from Mexico. Canada remains sidelined amid concerns over its China EV deal. Sixty-nine U.S. business associations support a 16-year USMCA extension, underscoring its importance to supply chain resilience and regional manufacturing investment.
According to mexicobusiness.news, Mexico and the United States will hold the second round of USMCA review negotiations beginning April 20, 2026, in Mexico City — a bilateral effort focused squarely on strengthening regional supply chains and reducing extra-regional dependencies in the automotive, steel, aluminum, and agricultural sectors.
Technical Working Sessions Target Key Sectors
U.S. Trade Representative Jamieson Greer will lead U.S. participation in technical working sessions covering steel and aluminum, automotive, agriculture, rules of origin, and trade policy coordination. The meetings follow the first round held in Washington on March 16 and reflect a deliberate bilateral track prioritized by both governments ahead of the July 1, 2026, formal USMCA review deadline under Art. 34.7.
Minister of Economy Marcelo Ebrard confirmed discussions will proceed “sector by sector,” with import substitution and regional production strengthening as central themes. The goal is to attract investment that shifts manufacturing processes to Mexico and reduces dependence on inputs from outside North America.
Timeline Under Pressure, Outcomes Uncertain
Greer has publicly signaled the July 1 deadline is unlikely to be met in full. At a Hudson Institute event, he stated:
“So I think we probably will not resolve all the issues by July 1,” he said at a Hudson Institute event, 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.
Under the agreement’s terms, if all three parties confirm intent to continue by July 1, the USMCA remains in force for an additional 16 years. If one party does not confirm, joint annual reviews must occur for 10 years, after which the agreement expires.
Mexico’s Proactive Alignment With U.S. Priorities
Mexico has taken concrete steps to align with U.S. trade objectives ahead of the review. On January 1, the Mexican government imposed tariffs on approximately 1,400 products from countries with which it does not have a free-trade agreement — a move widely seen as targeting China. Ebrard said his government is working through 52 demands the United States has placed on Mexico, while Mexico has placed 12 demands on the United States in return.
Mexico also emphasizes its integration with U.S. supply chains: Mexican auto exports contain approximately 40% US content, and Mexico runs a trade deficit with the United States in steel — a fact cited to counter U.S. concerns about import surges.
Canada’s Contrasting Position and Growing Tensions
- Canada’s engagement has been markedly less active: Dominic LeBlanc, Canada’s minister responsible for U.S. trade, said his team re-engaged with the Trump administration only over the past month after nearly no contact following a breakdown of talks in October.
- Prime Minister Mark Carney’s January trip to Beijing — where Canada agreed to allow 49,000 Chinese EVs into the country at reduced tariffs and invited Chinese investment into its auto sector — drew sharp criticism in Washington.
- Kimberly Breier, former Assistant Secretary of State for Western Hemisphere Affairs, noted:
“Actually going so far as to cut a deal with the Chinese was just seen as really just too much. So that is where I started to worry.”
Business Support and Expert Perspectives
Despite political uncertainty, 69 U.S. business associations backed extending the agreement in early March, describing the USMCA as “critical to the competitiveness and export success of the United States” in a letter to Greer, and expressing support for a 16-year extension.
Analysts offer divergent views on the outcome. Antonio Ortiz-Mena, Professor at Georgetown University, suggested the final arrangement may preserve the USMCA as a broad framework but add bilateral side agreements. Barry Appleton, Canadian trade lawyer and professor at New York Law School, expects the agreement will not survive in its current form due to Mexico’s greater willingness to reach transactional deals with Washington. Kellie Meiman Hock of McLarty Associates cautioned:
“Nothing is ever settled with this administration, so hoping for a certain date where we agree on a determined outcome and certainty can reign in North American trade, I strongly believe that is not going to happen on July 1 or any other date.”
Source: mexicobusiness.news
Compiled from international media by the SCI.AI editorial team.
