Mexico says 'cool-headed' approach to Trump's tariffs has paid off

By David Lawder

WASHINGTON (Reuters) - Mexico's "cool-headed" approach to U.S. President Donald Trump's tariff offensive has paid off in preferential treatment in his sweeping tariff announcement this week and a close working relationship with his trade team, Mexico's deputy economy secretary told Reuters on Thursday.

Luis Rosendo Gutierrez, undersecretary for international trade, said in an interview that Mexican officials will meet next week with Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer to review U.S. tariffs on auto imports and steel and aluminum, and the state of those industries.

The talks also will commence a review of the nearly five-year-old U.S.-Mexico-Canada Agreement that underpins North American trade.

"The instruction of President Claudia Sheinbaum was to work closely and cool-headed with the United States government looking for a fair and preferential treatment," Gutierrez said. "And I think that strategy was best. To be close, to be constructive, and to bring proposals for the United States."

Mexico, along with Canada, largely escaped Trump's new 10% global baseline tariff and steeper "reciprocal tariffs" for many trading partners on Wednesday. It still faces a 25% fentanyl-related tariff, but an exemption from these duties for USMCA-compliant goods was extended indefinitely. Those tariffs would fall to 12% if the fentanyl problem is solved.

Mexico still faces separate, 25% tariffs on vehicles and auto parts, minus U.S. content, and 25% duties on steel imports.

Unlike Canada, Mexico has not imposed retaliatory measures against U.S. exports in the trade dispute, preferring to engage in more constructive dialogue. Canadian Prime Minister Mark Carney announced limited countermeasures against about $25 billion worth of U.S. imports on Thursday.

"Obviously, we would like that these tariffs were reduced," Gutierrez said. "Nevertheless, we need to negotiate to try to improve conditions, not only for Mexico, but also for United States, and this idea to be complimentary in our economies."

At next week's meetings he said Mexican officials would bring up USMCA side letters agreed by Trump's first administration that granted generous duty-free automotive import quotas to Mexico and Canada in the event that Section 232 national security tariffs on autos were imposed at that time. Trump's administration has indicated no plans to honor the quota commitments.

(Reporting by David Lawder; Editing by Sandra Maler and Chris Reese)