The Trump administration is considering maintaining tariffs on imports from Canada and Mexico and is continuing negotiations to renegotiate the USMCA agreement. The U.S. aims to increase domestic production and reduce the trade deficit.
On May 27, 2026, at 6:32 AM, Reuters reported that the Trump administration is preparing to maintain tariffs on goods from Mexico and Canada, even as the United States begins negotiations to renegotiate the North American Free Trade Agreement, according to U.S. Trade Representative (USTR) Jamieson Greer on Tuesday (May 27).
Greer, speaking at a Council on Foreign Relations event in Washington, said the United States still has significant trade issues with Canada, and affirmed that the US will continue to use tariffs, even on close North American trading partners like Mexico, as long as the US faces a large trade deficit.
"The United States will continue to impose import tariffs," Greer said, "even on Mexico or other countries in the same hemisphere, as long as we have a large trade deficit."
That statement reflects the same approach that Greer discussed with industry executives in Mexico last month, that tariffs on automobiles and steel will remain under the revised USMCA agreement.
The United States and Mexico are scheduled to begin their first formal round of talks this week in Mexico City, discussing key issues such as revising rules of origin and economic security. Canada will not be participating in this round of talks.
Greer stated that the United States wants to reduce its trade deficit with Mexico and wants Mexico to raise tariffs on imports from outside North America in order to better support intra-regional supply chains.
Data from the U.S. Census Bureau indicates that while the overall U.S. merchandise trade deficit narrowed by more than 30% last year to $202,100 billion, the trade deficit with Mexico increased by nearly 15% to $196,900 billion.
Greer said the adjustments to the rules of origin, which would directly affect the automotive and other industries, aim to increase the proportion of domestically produced goods in the United States, although the official details of the demands have not yet been released.
"We will discuss rules of origin in a way that increases the proportion of U.S. production content on these goods," he said.
He also stated that if Mexico and other countries in the region agreed to raise tariffs on imports from outside the region, it would make it easier for the United States to grant preferential tariff treatment to its allies in the region.
“Ultimately, for national security reasons, I want our supply chain to come from this hemisphere, from North America,” Greer said.
Regarding Canada, Greer stated that the conflict between the Trump administration and Canada is not limited to trade disputes, and it is unclear how either side will find a way out of the conflict.
He pointed out that many countries, including the European Union, have accepted the US tariffs, but Canada chose to retaliate with counter tariffs, a move similar to that taken by China.
Greer also criticized Canada's automotive industry, which is often the target of attacks from the Trump administration, arguing that its success is not due to natural advantages but rather to Canadian government policies that mandate domestic car production. He emphasized, "We want to build cars here in the United States."
refer : reuters.com
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