International trade negotiators from the United States, Mexico, and Canada are gathering in Phoenix this week for discussions on the United States-Mexico-Canada Agreement (USMCA) as it approaches its fourth anniversary. Representing their respective countries are U.S. Trade Representative Katherine Tai, Canadian Minister Mary Ng, and Mexican Economy Secretary Raquel Buenrostro.
The agenda for the meeting includes discussions on the recent announcement by the Biden administration to impose a 102.5% tariff on Chinese-made electric vehicles. This move has raised concerns about Chinese automakers looking to invest in Mexico and gain access to the Americas through USMCA.
While Canadian Prime Minister Justin Trudeau is addressing the Service Employees International Union in Philadelphia, his trade minister is in Phoenix for the USMCA meetings. Trudeau has taken a more cautious approach towards Chinese EV imports, stating that Canada is closely monitoring the situation in the U.S.
The three countries have had disagreements within the USMCA framework, with Mexico seeking to block the import of genetically modified corn from the U.S. and the U.S. accusing Mexico of not opening its energy sector enough. Canada and Mexico have also raised concerns about the U.S.’s interpretation of the rules on automotive content and labor.
As the agreement approaches its first review in 2026, the business community, represented by Arizona Chamber of Commerce & Industry President Danny Seiden, is urging the trade leaders to uphold the spirit of USMCA. Seiden emphasized the importance of maintaining tariff-free imports of fresh produce from Mexico, such as tomatoes, to protect Arizona jobs and prevent price increases for U.S. consumers.