US Commerce Secretary Stalls Tariff Deal with Mexico

Howard Lutnick, US Secretary of Commerce, is at the center of the tariff negotiations with Mexico. According to an exclusive report by The Wall Street Journal published on Thursday, October 15, 2026, which cites people familiar with the conversations, his opposition to significantly cutting certain tariffs has stalled the dialogue. Officials from both countries deny this.

• According to the WSJ, Lutnick is resisting significant cuts to the 25% tariff on Mexican autos and the 50% tariff on steel, aluminum, and their derivatives.
• He does not lead the negotiations, which Trade Representative Jamieson Greer heads, but his Commerce Department administers these tariffs.
• Officials from both governments deny that the conversations are stalled, and Mexico says that tariff relief is its priority.

Why it matters: Mexico is one of the United States’ main trading partners. Tariffs on autos, steel, and aluminum affect prices and jobs on both sides of the border, from factories in Mexico to plants and dealerships in the US.

Who is Howard Lutnick

Lutnick is a Wall Street multimillionaire who served as CEO of Cantor Fitzgerald, a New York-based financial firm, for decades. The company had its offices in the North Tower of the World Trade Center. In the September 11, 2001 attacks, he lost 658 employees, including his brother Gary.

After the 2024 elections, he was co-chair of Donald Trump’s transition team. Since February 2025, he has been Secretary of Commerce and has become one of the most visible voices defending the president’s tariffs.

What the Wall Street Journal says about the stall

According to the WSJ, both countries seemed close to an agreement to reduce tariffs in exchange for concessions from Mexico. One of these concessions was already on the table: Mexico had agreed to suspend its 10% tariff on imports of parts and components for vehicle assembly for five years.

The tariffs that Lutnick does not want to cut significantly were imposed for «national security» reasons and are administered by his department. The newspaper claims that his stance is in response to pressure from the US industry, particularly the aluminum industry, which warns of damage to companies and job losses.

Tension with Greer and a previous pattern

Lutnick is not the lead negotiator with Mexico. That task falls to Greer, and, according to the WSJ, Lutnick’s presence creates tension between the two. The newspaper adds that this is the second time Lutnick has disrupted advanced negotiations with a North American partner. It also notes that he has reinserted himself into the trade agenda after being relegated for much of 2026.

Mexico’s and both governments’ version

Officials from both countries denied that the negotiation is stalled. Mexico’s Secretary of Economy, Marcelo Ebrard, said on October 16, according to Bloomberg Línea, that he has never perceived a negative attitude towards Mexico from Lutnick, with whom he spoke at the G20 ministerial meeting. Ebrard also stated that about 82% of Mexico’s exports to the US are tariff-free, as reported by MundoNow.

For Mexico, tariff relief is the priority. Closing this bilateral agreement would also facilitate the ongoing review of the USMCA (T-MEC).

What’s next

According to both governments, negotiations continue, and there has been no announcement of a breakdown. It remains to be seen whether a cut to tariffs on autos, steel, and aluminum will be agreed upon, a point that, according to the WSJ, concentrates Lutnick’s resistance. The outcome will also set the pace for the USMCA review. If you work in the automotive or metallurgical industry, or if you import or sell products that depend on these chains, it is advisable to follow official announcements from the Department of Commerce and the Office of the Trade Representative.

Sources: Mexico News Daily (WSJ summary); Reuters; Astillero Informa. Data consulted on October 17, 2026.