Mexico’s Sheinbaum says she spoke with Trump as trade negotiations continue | International Trade News

Mexican president says she is looking for a reduction in tariffs as both countries seek new bilateral trade deal.

Mexican President Claudia Sheinbaum has said that she had a “very good” phone call with United States counterpart Donald Trump, as the neighbouring countries continue to work towards an agreement on a bilateral trade deal.

Speaking during her morning news conference on Friday, the Mexican president said that she spoke with Trump on Wednesday but did not provide additional details.

“Progress is being made toward a potential agreement between us, Mexico, and the United States,” Sheinbaum said, adding that she hopes the deal will result in a decrease in US tariffs on Mexican products.

“We are doing everything we can, within the framework of sovereignty, respect, and what is best for Mexico, to reach a deal soon,” she added.

Mexico and the US are seeking a bilateral trade deal before the November midterm elections in the US, where many voters attribute higher prices in part to Trump’s imposition of steep import taxes on most trading partners around the world.

Sheinbaum said that Mexico hopes to obtain tariff relief for industries such as steel, aluminium, and cars.

Mexico and Canada are part of a free trade agreement with the US – known as the USMCA – that has created a high degree of economic integration over the last several decades and exempted the majority of exports from US tariffs.

But Trump slapped some of those industries with high tariffs. As a result, Mexico and Canada are now among those scrambling to adjust to the Trump administration’s efforts to reorient US trade relations.

In remarks on Thursday, Trump said he could end trade relations with Mexico and European countries in response to a decision by the US Federal Reserve to raise interest rates.

Efforts to reach an agreement between Mexico and the US also come amid escalating tensions between the US and Canada, which have prompted both sides to step up tariffs on some of their respective products.

Comments from Trump have also brought anger in both neighbouring countries for what critics see as blatant disregard for their sovereignty.

Trump has mused about turning Canada into the 51st state and pushed for US military operations on Mexican territory, remarks that have prompted unease and pushback from Sheinbaum and Canadian Prime Minister Mark Carney.