CALGARY, ALBERTA (RFD-TV) — U.S.-Mexico trade negotiations have stalled over tariffs on automobiles, steel and aluminum, adding uncertainty to North American trade relations and raising questions about potential effects on American agriculture.
Shaun Haney, host of Real Ag Radio, said the latest developments resemble trade tensions between the United States and Canada, where industrial tariffs have complicated negotiations.
Reuters reported October 15 that progress toward a U.S.-Mexico tariff agreement had stalled, although officials said discussions were continuing.
“There’s a little bit of déjà vu going on here,” Haney said.
Tariff Disputes Complicate Negotiations
In his interview with RFD-TV, Haney said U.S. Commerce Secretary Howard Lutnick has opposed significant reductions to the 25-percent tariff on Mexican automobiles and 50% tariffs on steel and aluminum, including finished products made from those materials.
The tariffs have become a major point of disagreement as the two countries work toward a broader trade agreement.
“There’s no deal,” Haney said. “But both talks have said that doesn’t mean they’re walking away at this point.”
He said the negotiations remain complicated by disagreements over industrial trade, with the potential to affect businesses operating across the border.
Mexico Remains a Key Market for U.S. Agriculture
Although automobiles and metals dominate much of the current debate, Haney said Mexico remains an important destination for American agricultural products.
“Mexico is obviously a very important market for U.S. agriculture,” he said.
Haney identified soybeans, pork, and dairy products as key U.S. agricultural exports to Mexico. He noted that Mexico is the largest export market for U.S. dairy products, with Canada second.
Mexico was also the largest overall destination for U.S. agricultural exports in 2025, according to USDA data.
Haney said President Donald Trump is seeking increased Mexican purchases of U.S. goods, including agricultural products.
“If it does happen, that’s going to make U.S. farmers very happy,” Haney said.
He cautioned that a prolonged impasse could create additional complications for trade between the two countries.
Will USMCA Negotiations Return to Three Countries?
Haney said the Trump administration has emphasized bilateral negotiations rather than returning to the three-country format used during the original North American Free Trade Agreement renegotiations.
Mexico has pushed for broader discussions involving all three USMCA members on some issues, including automotive manufacturing requirements.
Haney said manufacturers have raised concerns that paperwork and compliance requirements for North American components can affect production decisions.
The United States and Mexico have conducted bilateral negotiating rounds as part of preparations for the USMCA joint review. USTR announced in October that it was seeking public comments ahead of the 2027 review.
Haney said renewed three-country discussions could help address shared concerns involving automobiles, steel and aluminum.
“I think it would be a positive sign if we saw all three countries get together in an official sort of nature to work on some of these things,” he said.
Trade Certainty Remains a Concern
Haney said continued uncertainty makes it difficult for companies to plan manufacturing investments and manage cross-border operations.
He said he would welcome a return to joint negotiations, but questioned whether that approach would happen.
“I would enjoy seeing them all in the same room,” Haney said. “I’m just probably not going to put my money on the reality of that.”
