U.S.-Mexico Tariff Negotiations Stall as Lutnick Opposes Major Tax Cuts
nashnova research
US-Mexico tariff negotiations have stalled after Commerce Secretary Howard Lutnick opposed steep cuts to auto and steel-aluminum duties, shelving a deal that was nearing completion.
What broke down in the talks?
The two sides were close to finalizing a deal: the US would cut tariffs on Mexican steel, aluminum, and autos in exchange for Mexican trade-policy concessions.
Negotiations slowed sharply over how far to cut auto and metals tariffs.
In plain terms = both sides agreed on "cut," but could not agree on "how much" — and the deal stalled.
Why is Lutnick the main obstacle?
Commerce Secretary Howard Lutnick opposes deep reductions on three fronts: the 25% tariff on Mexican autos, the 50% tariff on steel and aluminum, and duties on finished goods made from steel and aluminum.
This means → in his framework, the current high tariffs are bargaining chips — a large concession now would give away leverage early.
This reflects a split within the US administration over Mexico trade strategy — not every official is in a hurry to close a deal.
What does Mexico say — is a deal still possible?
Mexico is relatively upbeat. Deputy Trade Minister Luis Rosendo Gutierrez told the Wall Street Journal that talks are still making progress.
A US Commerce Department spokesperson said the department maintains ongoing dialogue with Mexico.
Yet as of publication, neither country's trade authority had responded to Reuters' request for comment. In plain terms = neither side has denied a breakdown, but no one can offer a timeline for resumption either.
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