Washington Refuses to Lower Auto and Metal Tariffs in Mexico Negotiations
Tariff negotiations between Washington and Mexico stalled after the Commerce Secretary rejected reducing 25% tariffs on autos and 50% on steel and aluminum, though both sides denied a deadlock.
Trade negotiations between the United States and Mexico over tariff reductions on automobiles and metals have hit a snag, as Commerce Secretary Howard Lutnick opposed a tangible cut to these tariffs.
According to The Wall Street Journal, Lutnick opposed reducing the 25% tariffs on Mexican vehicles and 50% on steel and aluminum, and also objected to easing tariffs on goods manufactured from these metals.
Mexican Deputy Commerce Minister Luis Rosendo Gutiérrez told the newspaper that "there is progress in the negotiations."
A spokesperson for the U.S. Department of Commerce confirmed that the department is in an "ongoing dialogue with Mexico regarding trade," while both sides denied reaching a deadlock.
What do these terms mean?
Tariffs: A tax imposed by a country on imported goods, raising their price in the domestic market to protect local production.
Steel and Aluminum: Two basic metals used in automotive manufacturing, construction, and appliances; tariffs on them affect the cost of manufactured goods.
Trade Negotiations: Discussions between two countries to determine tariffs, quotas on goods, and rules of bilateral trade exchange.
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