Mexico ‘optimistic’ on US trade deal after Canada talks collapse

Mexican President Claudia Sheinbaum expressed optimism she can reach a trade deal with US President Donald Trump as her chief negotiator leads talks in Washington, just after negotiations between the US and Canada collapsed.

“As President Trump said, we hope to reach an agreement with the US,” she told reporters on Monday after being asked about the escalating US-Canada impasse. “I’m optimistic an agreement can be reached.”

Economy Minister Marcelo Ebrard, Sheinbaum’s top trade negotiator, will remain in Washington for several days as he seeks to lower 50 per cent US tariffs on Mexican steel and aluminium, and 25 per cent duties on cars.

The six-year-old USMCA trade pact includes the US, Mexico and Canada. Last month, it formally entered a phase of annual reviews.

Washington’s negotiations with Ottawa fell apart in recent days, prompting Trump to say he will double tariffs on Canadian cars and parts starting next year.

The breakdown also triggered a 50 per cent US levy on about US$20 billion of Canadian goods, while Prime Minister Mark Carney announced retaliatory tariffs to take effect on September 8.