Trump and Sheinbaum hold call as US and Mexico near trade agreement

Mexican President Claudia Sheinbaum and U.S. President Donald Trump held a positive phone call on September 16, 2026, as the two nations close in on an interim bilateral trade agreement. Following the collapse of U.S.-Canada trade talks, Mexico is sprinting to secure tariff relief for its steel, aluminum, and automotive sectors before the U.S. midterm elections on November 3, 2026. The deal aims to stabilize Mexico's economy and reassure investors while addressing U.S. demands on automotive content and Chinese investment.

US-Mexico bilateral trade negotiations

• ▪Mexican President Claudia Sheinbaum proposed legislation giving the Mexican government new powers to review and block foreign acquisitions, establishing an investment-screening regime.
• ▪Mexico and the United States are negotiating an interim bilateral trade deal to address automotive content, Chinese investment, and tariff relief.
• ▪The fourth round of formal trade discussions between the United States and Mexico has been rescheduled to take place on September 28 and 29, 2026.

Canada trade talks collapse

• ▪The United States banned imports of Canadian alcohol, motorcycles, and dairy products, prompting Canada to vow to match the tariffs dollar for dollar.
• ▪Trade negotiations between the United States and Canada collapsed in August 2026, leading to a bitter tariff dispute between the two countries.

Trump-Sheinbaum phone call

• ▪Mexican President Claudia Sheinbaum held a phone call with U.S. President Donald Trump on September 16, 2026, to discuss bilateral trade relations.
• ▪An unnamed official stated that U.S.-Mexico trade talks are active and moving in a positive direction, disputing any notion that the call between the leaders went poorly.
• ▪Mexican President Claudia Sheinbaum characterized her September 16, 2026 phone call with U.S. President Donald Trump as very good and noted that progress is being made toward a potential bilateral trade agreement between Mexico and the United States

Tariff relief priorities

• ▪Mexico is seeking tariff relief from the United States for key industries, specifically targeting steel, aluminum, and automobiles.
• ▪Under Section 232 national security tariffs, Mexican steel exported to the United States faces a 50% tariff, while Mexican vehicles are subject to a 25% duty.

Midterm election deadline pressure

• ▪Mexico and the United States are racing to reach a trade agreement before the U.S. midterm elections scheduled for November 3, 2026.
• ▪Mexican President Claudia Sheinbaum's administration views a swift U.S. trade deal as critical to reassuring financial markets and investors amid a weak domestic economy.

Debatable claims

• ▪Mexico should restrict foreign acquisitions to secure a US trade deal
• ▪The US should grant Mexico tariff relief on steel and automobiles
• ▪Mexico should prioritize a bilateral trade deal over trilateral USMCA solidarity