President Trump says tariff deal with Mexico is close — The Rio Times

US President Donald Trump said that the United States is very close to a tariff agreement with Mexico. Mexico’s Economy Minister Marcelo Ebrard was in Washington to continue consultations, The Rio Times reports.

Mexican President Claudia Sheinbaum also said on October 20 that the sides had moved closer to an agreement but still had unresolved issues. According to her, Mexico seeks to reduce US tariffs on cars, steel and aluminum as much as possible, as well as avoid the introduction of new tariffs.

Current tariffs

The United States currently imposes 50% tariffs on steel and aluminum from Mexico and a 25% tariff on automobiles, with certain exceptions. According to the outlet, the Mexican side is seeking rates of 15% or lower for automobiles and is proposing a mechanism that would take into account components produced in all three USMCA countries — the United States, Mexico and Canada.

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Sheinbaum stressed that Mexico would not agree to terms that contradict its constitution and laws or could harm the national economy and employment. In an address from Washington, Ebrard said that negotiations with the United States were progressing.

Trade between the United States and Mexico

Trump links a possible agreement to reducing the US trade deficit with Mexico. According to the US Census Bureau, in 2025 US goods exports to Mexico amounted to $337.3 billion, while imports totaled $534.3 billion. Thus, the goods trade deficit reached $197 billion.

From January through August 2026, the US goods trade deficit with Mexico amounted to $155.9 billion: exports stood at $263.5 billion, while imports totaled $419.3 billion. The sides have not yet disclosed the final terms of a potential tariff agreement.