U.S.-Mexico trade talks cool over metals

U.S. and Mexican trade negotiators have hit an impasse over tariffs on steel and aluminum, dashing earlier optimism for an imminent deal and likely kicking major progress until after the midterm elections, people familiar with the matter said. Talks have cooled off in recent days after U.S. officials including Commerce Secretary Howard Lutnick took issue with Mexican officials’ demands for reduced tariffs on metals, according to two of the people, who asked not to be identified discussing private deliberations. Lutnick has sought to exert more influence in the talks and broader trade policy after taking a back seat to U.S. Trade Representative Jamieson Greer, whose office earlier spearheaded the negotiations, according to the people. Lutnick met virtually with Mexican President Claudia Sheinbaum on Sept. 9. The White House and Commerce Departments did not respond to requests for comment. Mexican officials had earlier expressed hope that a deal was within the negotiators’ grasp. One sticking point is around lowering tariffs on derivative metals products. Duties on downstream products made from steel and aluminum have amassed to cover a substantial part of Mexico’s economy, and Mexican leaders have said they did not want a deal without relief on that. Talks between the two countries stalled after a counterproposal from Lutnick failed to address Mexican concerns, the people said. Now, U.S. officials have grown comfortable with the idea of kicking a potential deal down the road, well after the Nov. 3 midterm elections. “We’re a little bit stuck on the details,” Roberto Lazzeri, Mexico’s ambassador to the U.S. and one of several officials…

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