With Canada trade on the rocks, Lutnick heads to Mexico

Link to Article: https://www.politico.com/news/2026/09/08/lutnick-heads-to-mexico-as-trade-talks-advance-01067949

This article discusses Commerce Secretary Howard Lutnick’s upcoming trip to Mexico to meet President Claudia Sheinbaum and the Economy Secretary, Marcelo Ebrard, on Wednesday to talk about United States tariffs on Mexican autos and metals. Mexico has watched from the sidelines of the intensifying tariff fight between the U.S. and Canada but remains affected by it because any resolution will shape the ongoing, six year USMCA review led by USTR, Jamieson Greer. Last month, Lutnick refused to give Canada concessions on auto and metal tariffs, so Canada chose to walk away from the talks, and the U.S. put a 50% tariff on Canada. In return Canada placed counter-tariffs back on the U.S. Meanwhile, Mexico-U.S. conversations have been quietly going well, and an interim deal may happen in the future. Sheinbaum also proposed a new rule to check foreign investments, a rule the U.S. has asked for.

This article shows that Mexico and Canada are being treated very differently by the U.S. from one another. Mexico’s talks are advancing, while Canadas have completely broken down. This is likely due to the fact that Mexico is much more willing to work with U.S. requests, such as proposing the foreign investment screening rule that the U.S. wanted. On the other hand, Canada pushed back on tariff concessions and walked away, leading to an immediate 50% tariff. This shows that cooperating with the U.S leads to smoother negotiations, while resisting U.S. demands can lead to quick and large consequences.

Lutnick and Greer could keep pressuring Mexico to finish an interim deal soon while also pointing to Mexico as an example for how negotiations should be. Sheinbaum’s government could keep proposing solutions like the foreign investment rule to keep progressing and get relieved from car and metal tariffs. Ebrard, who has met with Lutnick many times already, could continue being the main person handling talks with the U.S. Canada’s negotiators, who already walked away, and are now facing a 50% tariff plus their own counter tariffs, would have to decide whether to go back to the table or keep pushing back.

This connects to nation-states and IGOs, since the U.S., Mexico, and Canada are each sovereign nation-states negotiating through the USMCA, an intergovernmental organization created to manage trade between them. This article shows how nation-states use IGOs like USMCA to work out shared rules, but also how each state still acts in its own interest (Mexico cooperating with the U.S. requests while Canada pushes back.)

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