US 'Very Close' to Tariff Deal With Mexico on Steel, Auto

US President Donald Trump said on Friday (Oct 23) that Washington is close to reaching a trade agreement with Mexico, The Rio Times reported, though neither government has announced a final deal, published any text or set a date for signing.

“We’re very close to a deal with Mexico,” Trump told reporters, according to the outlet, which cited a clip posted by the White House’s Rapid Response 47 account. He added that Canada was also working hard to reach an agreement with the United States. Citing Infobae, The Rio Times said Trump indicated that any deal would have to be very good for the US or he would not close it.

MundoNOW, citing the EFE news agency, reported that Trump also told reporters on the White House South Lawn that Washington held the upper hand in its talks with both of its neighbours.

Sheinbaum says issues remain

The comments followed remarks by Mexican President Claudia Sheinbaum at her morning news conference on Tuesday (Oct 20), when she said the two sides were very close but some matters were still unresolved. According to Mexico News Daily, she said Mexico’s aim was to reduce as far as possible the tariffs it faces on vehicles, steel and aluminium, and to avoid any new duties.

Sheinbaum said the US had put forward proposals offering to lower a tariff in return for steps by Mexico, and that Mexico would not agree to anything outside its constitution and laws or anything that would hurt the national economy or jobs. She also praised the attitude of Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer, the outlet reported.

Mexico’s Economy Secretary Marcelo Ebrard was in Washington on Friday and said in a recorded message that the two countries were advancing in their conversations, The Rio Times reported, citing Infobae.

Tariffs and the trade gap

The US currently applies tariffs of 50% on steel and aluminium and 25% on cars, with some exceptions, according to both The Rio Times and MundoNOW. Mexico is seeking rates of 15% or less on vehicles, The Rio Times said, citing El Economista’s summary of a Wall Street Journal report.

The Wall Street Journal reported on Oct 15 that Lutnick had resisted large cuts to the car and metals tariffs. Both governments denied that talks had reached an impasse, and Ebrard later said Lutnick was not opposed to lowering tariffs, according to Mexican media cited by The Rio Times. Ebrard has said about 80% of Mexican exports to the US already enter tariff-free.

At a rally in Kansas on Monday, Trump said “we’re not going to lose $150 billion with Mexico”, referring to the trade deficit, Mexico News Daily reported. US Census figures cited by The Rio Times put the US goods deficit with Mexico at US$155.9 billion in the first eight months of 2026, after US$197.0 billion for all of 2025.

FXStreet reported on Tuesday that the Mexican peso held at about 18.42 per US dollar, describing the trade comments as positive for Mexico and supportive of the currency.

What’s next for tariff deal

No date has been set for a fourth round of talks, and Ebrard has said Mexico expects a good answer before the end of 2026, The Rio Times reported, citing Forbes Mexico. The outlet said it remains unclear whether a deal will come before the US midterm elections on Nov 3.

The negotiations run alongside the review of the US-Mexico-Canada Agreement (USMCA). The Office of the US Trade Representative opened a public-comment process for the 2027 review on Oct 5, and Mexico will hold its own consultations in January, according to the same report.

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