United States and Mexico Extend Tariff Talks

On October 28, President Trump confirmed Mexican President Claudia Sheinbaum’s statement that the United States would extend its tariff truce for a “few more weeks.” The extension postponed a planned increase in duties on November 1, which was originally set to rise from 25% to 30% on Mexican goods that do not comply with the U.S.-Mexico-Canada Agreement (USMCA). The United States and Mexico have engaged in months of negotiations since President Trump first granted a 90-day reprieve in July, which was intended to provide the nations with additional time to reach a bilateral trade deal that addresses U.S. national security concerns related to illegal immigration and drug trafficking. 

Senate Votes to Block IEEPA-Based Tariffs

On October 29, the Senate voted on a series of joint resolutions to terminate the national emergencies declared to impose duties on articles imported from Brazil (S.J.Res.81) and Canada (S.J.Res.77), as well as all tariffs imposed under the International Emergency Economic Powers Act (IEEPA) more broadly (S.J.Res.88). The measures narrowly passed, with Sens. Susan Collins (R-ME), Mitch McConnell (R-KY), Lisa Murkowski (R-AK) and Rand Paul (R-KY) joining all Democrats to advance the resolutions. Sen. Thom Tillis (R-NC) only supported the resolution to terminate tariffs on Brazilian goods, citing concerns about using trade restrictions in response to the trial and ultimate conviction of former President Jair Bolsonaro.
 
As with previous Democratic efforts to repeal President Trump’s tariff policies, the impact of these resolutions is largely symbolic. On September 16, the House approved a rules package (H.Res.707) that maintains an existing policy that effectively prevents Democrats from forcing votes on resolutions aimed at overturning the president’s tariff agenda through March 30, 2026. The restriction originated in the rule through which Republicans brought the March continuing resolution (CR) to the House floor.

House Democrats Advocate for USMCA Renegotiation

On November 3, more than 100 House Democrats sent a letter to President Trump, advocating for a “significant renegotiation” of the U.S.-Mexico-Canada Agreement (USMCA). USMCA includes a Joint Review provision, novel in U.S. trade agreements, which requires the United States, Canada and Mexico to review the operation of the agreement on the sixth anniversary of the agreement’s entry into force date, which is July 1, 2026. The letter states that the Trump administration should leverage the Joint Review to limit offshoring, combat transshipment and support U.S. workers and businesses. To do so, the lawmakers advocate for key reforms, including changes to USMCA’s Rapid Response Mechanism (RRM), regional content requirements for strategic goods, and labeling rules for agricultural products, among other modifications. They urge the president and USTR to “provide Members of Congress with a written summary of [their] views on the scope and goals of the review and renegotiations as soon as possible.” USTR is required to compile a detailed report for Congress by Jan. 2, 2026.

ECA submitted its comments in advance of the USMCA Joint Review, which can be reviewed here.