The United States and Mexico have officially launched preliminary discussions ahead of the mandatory July 1, 2026 review of the USMCA, marking the first test of the agreement’s six-year review mechanism.
Talks began with a virtual meeting on March 17, followed by an in-person session in Washington on March 18 between officials from both countries.
Under Article 34.7, the three members must decide whether to extend the agreement for another 16-year term or allow it to expire, though current trade data suggests continuation is likely, with US exports to Canada and Mexico up 56% since 2020.
A key sticking point is steel trade. Mexico is pushing for the removal of Section 232 tariffs on steel and aluminum, while the US is advocating for stricter rules of origin to prevent third-country circumvention, particularly from China.
Industry sentiment remains divided. US steel groups support tighter controls, while Mexico’s steel sector warns of declining output and demand, with capacity utilization down to 55% and consumption falling over 10% in 2025.
VietnamSteel by Hoa Sen Group
