The United States and Mexico are advancing critical trade negotiations as Donald Trump and Claudia Sheinbaum held a phone conversation on September 17, 2026. The call comes amid intensifying efforts to resolve outstanding issues before the 2026 review of the United States-Mexico-Canada Agreement (USMCA), the cornerstone trade pact governing economic relations across North America.
A person familiar with the Wednesday call described the conversation as “so-so,” noting that new issues were raised during the discussion. However, a U.S. official characterized the exchange as “constructive” and rejected suggestions that the call had gone poorly. These divergent characterizations highlight the complexity of ongoing bilateral negotiations between the two neighboring nations.
USMCA Review Stakes for North American Trade
The USMCA took effect in 2020, replacing the North American Free Trade Agreement (NAFTA) that had governed regional commerce for decades. The current 2026 review represents a critical juncture for determining how trade flows, supply chains, and market access will function among the United States, Mexico, and Canada moving forward.
For the Latino community in the United States, these negotiations carry significant implications. Cross-border trade supports millions of jobs in both countries, particularly in sectors where Hispanic workers are heavily represented, including manufacturing, agriculture, and logistics. Any changes to the USMCA framework could directly impact employment opportunities and consumer prices on both sides of the border.
Mexican officials believe the countries are nearing an agreement on several outstanding trade issues, according to local media reports. The negotiations have focused on key areas including automobiles, steel and aluminum, agriculture, labor protections, and economic security. These sectors form the backbone of bilateral commerce and employment across the region.
Key Negotiation Areas Under Discussion
The automobile industry remains at the center of USMCA talks, as North American supply chains have become deeply integrated over decades of free trade. Vehicle parts often cross the U.S.-Mexico border multiple times during production, making rules of origin and tariff structures crucial for manufacturers and workers alike.
Steel and aluminum negotiations also carry weight, as these materials are essential inputs for construction, automotive production, and infrastructure projects. The Trump administration has repeatedly raised concerns about trade imbalances and tariff policies as it seeks changes to the regional trade framework.
Understanding the broader context of USMCA investment review changes and their implications for trade can help businesses and workers prepare for potential policy shifts.
Agricultural trade affects communities on both sides of the border, with Mexican produce filling American supermarket shelves and U.S. grain exports feeding livestock in Mexico. Labor protections under the agreement ensure that workers in all three countries compete on fair terms, preventing a race to the bottom on wages and working conditions.
Recent Diplomatic Progress in Mexico City
U.S. Trade Representative Jamieson Greer and Mexican Economy Secretary Marcelo Ebrard held the latest formal round of bilateral talks in Mexico City in July 2026. Both sides described those discussions as constructive and agreed to continue negotiations aimed at resolving differences before the formal USMCA review.
The United States and Mexico have been holding bilateral discussions ahead of the broader USMCA review, which also involves Canada. This two-track approach allows Washington and Mexico City to address specific concerns before engaging in trilateral negotiations that will ultimately determine the agreement’s future.
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President Trump offered an optimistic assessment of the negotiations on September 18, 2026, according to Mexican media.
The United States was “very close” to reaching an “excellent” trade agreement with Mexico.
This optimistic assessment signals potential progress despite the mixed characterizations of the Trump-Sheinbaum phone call.
Mexico’s Negotiation Priorities and Strategy
Mexico has sought to preserve access to the U.S. market while negotiating issues involving tariffs, rules of origin, and protections for key industries. The country’s economy depends heavily on exports to its northern neighbor, making favorable trade terms essential for continued growth and employment.
The outcome of the bilateral talks will feed into the broader review of the USMCA, shaping North American commerce for years to come. For Mexican exporters and American importers, the stakes could not be higher as negotiators work through technical details and political considerations.
The relationship between trade policy and broader diplomatic issues adds complexity to negotiations. Recent discussions around Trump’s Mexico cartel crackdown demands illustrate how security concerns can intersect with economic negotiations between the two nations.
President Sheinbaum has emphasized Mexico’s commitment to maintaining strong economic ties with the United States while protecting national interests. Her administration has engaged actively in negotiations, sending high-level officials to multiple rounds of talks and maintaining open communication channels with Washington.
Next Steps and Timeline for Trade Negotiations
The next round of formal talks is scheduled for September 28 and 29 in Washington after being postponed by one week. This delay suggests that both sides are taking time to prepare positions and potentially resolve preliminary issues before the face-to-face meetings.
The Trump administration has repeatedly raised concerns about trade imbalances, tariffs, and rules governing North American supply chains as it seeks changes to the regional trade framework. These priorities will likely dominate the agenda when negotiators reconvene in the U.S. capital.
For businesses operating across the U.S.-Mexico border, the coming weeks will be crucial for understanding potential changes to customs procedures, tariff rates, and compliance requirements. Companies in affected sectors should monitor developments closely and prepare for possible adjustments to their supply chain strategies.
- Automobiles and auto parts face potential changes to content requirements and tariff treatment
- Steel and aluminum industries await clarity on duties and market access provisions
- Agricultural products may see revised quotas or phytosanitary regulations
- Labor standards enforcement mechanisms could be strengthened or modified
- Economic security provisions may introduce new compliance obligations for sensitive sectors
The Latino business community in the United States has particular interest in these negotiations, as many Hispanic-owned enterprises engage in cross-border commerce or depend on supply chains that span both nations. Trade associations and advocacy groups are monitoring the talks closely to ensure community interests are represented.
Workers in industries affected by USMCA provisions should stay informed about potential changes that could impact their employment. Manufacturing jobs in border states like Texas, Arizona, and California are particularly sensitive to shifts in trade policy.
What is the USMCA and why does it matter?
The United States-Mexico-Canada Agreement (USMCA) is the trade pact governing economic relations among the three North American countries. It took effect in 2020, replacing NAFTA, and covers areas including automobiles, agriculture, labor, and intellectual property. The agreement affects millions of jobs and billions of dollars in trade annually.
When are the next USMCA trade talks scheduled?
The next round of formal bilateral talks between the United States and Mexico is scheduled for September 28 and 29, 2026, in Washington. These talks were postponed by one week from their original date.
What industries are most affected by these negotiations?
Key sectors under discussion include automobiles, steel and aluminum, agriculture, labor protections, and economic security. These industries form the core of U.S.-Mexico trade and employ millions of workers in both countries.
How did the Trump-Sheinbaum phone call go?
Accounts differ on the September 17, 2026, call. A person familiar with the conversation described it as “so-so,” noting new issues were raised. However, a U.S. official characterized the exchange as “constructive” and rejected suggestions it went poorly.
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The September 28-29 negotiations in Washington represent the next critical milestone in the USMCA review process, where U.S. Trade Representative Jamieson Greer and Mexican Economy Secretary Marcelo Ebrard are expected to continue discussions on automobiles, steel, agriculture, and labor protections that will shape North American trade relations for the coming years.
