Mexico’s Sheinbaum Says No USMCA Deal Yet on 12 October

MEXICO · TRADE

Mexico’s president says the North American trade pact is not ending, even as Washington talks to Mexico and Canada separately.

Mexican President Claudia Sheinbaum said on Monday, 12 October, that USMCA talks with the United States continue without a final deal. She spoke at her daily morning press conference at the National Palace in Mexico City.

The remarks answer Donald Trump, who said at a rally on Saturday that he would make a new trade deal with Mexico. For US carmakers, farmers and investors, the outcome decides the rules for most North American trade.

What Sheinbaum Said About the USMCA Talks

“There is progress, there is no final agreement yet, but we keep talking,” Sheinbaum said, as quoted by López-Dóriga Digital. Asked about Trump’s comments, she replied that they did not mean ending the pact, which Mexico calls the T-MEC.

Sheinbaum has been Mexico’s president since October 2024 and leads the left-wing Morena party’s government. Her economy secretary, Marcelo Ebrard, runs the trade talks with Washington.

She described the review rules written into the treaty, according to López-Dóriga Digital. After six years, the three countries decide whether the pact runs ten more years or is extended for 16.

Mexico and Canada asked for the 16-year extension, she said, while the United States proposed ten years with an annual review. Sheinbaum added that a later round could still bring the longer term: “That possibility is not closed.”

Lorries queue at the World Trade Bridge cargo crossing in Laredo, Texas, a main route for USMCA trade with Mexico; archive photo. Photo: U.S. Customs and Border Protection / Wikimedia Commons (Public domain)

What Trump Said and Why It Matters

Trump spoke at a rally in Clarksville on Saturday, 10 October, the Mexican outlet Latinus reported. He said the United States does not need Canada and would strike a new agreement with Mexico.

Latinus wrote that Trump repeated his aim to replace the three-country pact with a bilateral deal with Mexico. Latinus reported no date, text or legal form for such a deal.

Sheinbaum confirmed that Washington has chosen to negotiate with Mexico and Canada separately for now. Canada is led by Prime Minister Mark Carney of the Liberal Party, who has answered US tariffs with counter-measures.

The United States-Mexico-Canada Agreement took effect on 1 July 2020, replacing the older NAFTA pact. Its first joint review was due on 1 July 2026, and Washington has not agreed to the 16-year extension.

Tariffs at the Centre of the Talks

Mexico wants Washington to cut its tariffs on cars, steel and aluminium, Sheinbaum said. “What we want is the reduction of those tariffs,” she told reporters, according to López-Dóriga Digital.

She also wants no new US tariffs while the review is under way. In June, Infobae México recalled, she called cutting the 50% steel and aluminium and 25% car tariffs a success.

What It Means for You

For investors, the message is that the pact still stands and no tariff changes have been agreed. Companies with Mexican plants, such as General Motors and Ford, still operate under the current USMCA rules.

For the peso, trade headlines add to swings already driven by interest rates, the daily El Financiero noted on Monday. The peso closed on Friday at about MXN 18.41 per US$1, its weakest level since late November 2025, the paper reported.

For US shoppers, a deal that lowers tariffs could ease costs of cars and metal goods made in Mexico. A breakdown would do the opposite, but neither outcome is decided yet.

What Is Not Known

Neither government has published a draft text, a timetable or a list of agreed points. It is not known whether a separate US deal with Mexico would replace the three-country pact or sit beside it.

The exact wording of Sheinbaum’s remarks could not be checked against the official presidency transcript at the time of writing. The quotes here match across several Mexican outlets that covered the press conference.

What Comes Next

Talks continue between Ebrard’s team and US trade officials, with no closing date announced on Monday. Any change to tariffs would need a formal US decision, not a rally speech.

Sheinbaum’s comments do not mean a deal is close or that the pact is ending. They mean the treaty stays in force while both sides keep negotiating.

Frequently Asked Questions

Is the USMCA Ending?

No, Sheinbaum said on 12 October that the pact is not being terminated. The treaty remains in force while the United States, Mexico and Canada negotiate its future.

What Did Trump Say About Mexico?

At a rally in Clarksville on Saturday, 10 October, he said he would make a new trade deal with Mexico. He also said the United States does not need Canada.

What Does Mexico Want From the USMCA Talks?

Mexico wants lower US tariffs on cars, steel and aluminium. It also wants no new tariffs while the review continues.

How Long Could the Pact Be Extended?

Mexico and Canada asked for 16 years, while Washington proposed ten years with annual reviews. Sheinbaum said the longer term remains possible in a later round.

Sources: López-Dóriga Digital; Infobae México; Latinus; El Financiero; open.er-api.com (all accessed 12 October 2026).