Greer Confirms Tariffs and Quotas Against Mexico Over Record $197 Billion Deficit

U.S. Trade Representative (USTR) Jamieson Greer confirmed on July 16 that the Trump administration will evaluate tariffs, quotas, or other restrictions against Mexico in the USMCA renegotiation, citing the record bilateral trade deficit of $197 billion in 2025 as the primary justification, according to data from the U.S. Census Bureau.

The statement came at the Aspen Security Forum in Colorado, a reference forum for Washington's security and trade policy. Greer said he has a direct mandate from President Donald Trump to incorporate "tariffs, quotas, or any other mechanism" to control the deficit in the new agreement, as reported by El Financiero. The deficit with Mexico grew 17 percent in 2025, an increase of $28 billion, and is characterized by the USTR as "a real challenge, a real problem," according to Aristegui Noticias.

The tightening of rules of origin is the other front the USTR signaled. Sectors such as automotive, electronics, pharmaceuticals, and industrial goods will face stricter regional content requirements, with the goal of reducing inputs sourced from China and Vietnam. "We prefer to import from Mexico rather than from some parts of Asia, but we still need to make sure that is under control," Greer said. The official cited Toyota, which will invest $3.6 billion to move Tacoma pickup production from Tijuana to San Antonio, Texas, as an example of the reshoring Washington seeks to accelerate. Stricter rules of origin directly affect the energy sector, whose equipment and manufactured inputs are subject to the treaty's regional content requirements.

Greer described Mexico's negotiating counterpart as "quite pragmatic," in contrast to Canada, whose negotiations he reported as stalled. The third formal round begins the week of July 20 in Mexico City and will be the first since Washington explicitly confirmed that tariffs and quotas are on the table.

This article was drafted with artificial intelligence assistance based on verified sources and reviewed by a human editor before publication.