The US government plans to keep tariffs on imports from Mexico and Canada while renegotiating the USMCA trade agreement, officials said in late May 2026 [1, 2, 3, 4]. US Trade Representative Jamieson Greer spoke at the Council on Foreign Relations forum on May 26, reaffirming that the US faces significant trade deficits with both neighbors and intends to uphold tariffs as part of the deal. "The US is going to have tariffs. I mean, even with somebody like Mexico, or other countries that are in our own hemisphere, we're going to have tariffs as long as we have a giant trade deficit," Greer said [1]. He added that the US will seek to enhance rules of origin to increase US-made content in automotive and industrial goods through the talks [1].
The US trade deficit with Mexico rose nearly 15% to $196.9 billion in 2025, even as the overall US goods trade deficit fell by more than 30% last year [1, 2, 4]. Greer noted that large deficits require keeping tariffs on trading partners in North America to protect US interests [2]. Meanwhile, Canada has been excluded from current talks as unresolved disputes and Canadian tariffs on US goods complicate negotiations [1, 3, 4]. The US also hopes Mexico will raise tariffs on goods imported from outside North America to maintain preferential treatment within the region [1, 2, 4].
The first round of bilateral talks between the US and Mexico started on May 27, 2026, in Mexico City focusing on economic security and rules of origin [1, 3]. Further rounds are scheduled for mid-June in Washington, D.C., concentrating on agriculture and ensuring a level playing field, and a third round planned for late July in Mexico City [3].
As part of trade adjustments, the US plans to seek public input on which Chinese goods may qualify for tariff exemptions, aiming to balance trade concerns while updating the agreement [2]. The USMCA is shifting from a free trade arrangement to a managed trade framework incorporating tariffs, quotas, and requirements for higher US manufacturing content [4].
