Mexico expects US tariff relief on cars and steel despite stalled trade talks

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Economy Secretary Marcelo Ebrard told Mexico's Chamber of Deputies he expects a cut in US tariffs on cars and steel "in the coming weeks or months". A fourth round of talks on the North American trade agreement, planned for September, was postponed.

Mexican vehicles that fail the agreement's rules of origin pay a 25 per cent US tariff, and much of Mexico's steel pays 50 per cent.

Drop in Mexican car exports, September

12 %

Mexico's car exports fell 12 per cent in September from a year earlier, and production dropped 15 per cent, national statistics show.

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Canada is the third partner in the agreement. Washington wants to raise the share of a car's parts made in the region from 75 per cent to about 82 per cent, with half from US suppliers, which the Mexican industry says would raise costs.