Sheinbaum Says US Extending Deadline on Trade Deal for Several Weeks

Watch Sheinbaum Says US Extending Deadline on Trade Deal for Several Weeks - Bloomberg on Dailymotion

Transcript

00:00Tyler, one more question. It would be unfair to anybody else but you. I know you've been tracking all of this,

00:03but we saw a headline cross the Bloomberg terminal here a few hours ago about the relationship between the U.S. and Mexico.

00:09And Claudia Scheinbaum, the president of Mexico, said the U.S. is willing to extend the trade deadline for several weeks

00:14as conversations continue between the U.S. and Mexico. Of course, a dramatically different story between the U.S. and Canada.

00:21Your perspective on sort of the ongoing debate over what these trade deals will look like,

00:26given how Canada's now put itself in a position where it is, let's say, far out of favor from President Trump.

00:33Right. Actually, when this headline crossed, David, I went back to the first extension we saw,

00:38which was August 1st. 90 days would bring us to November 1st, which is why we're seeing this announcement now.

00:42And at the time, President Trump had said that Mexico was going to be given preferential treatment

00:47because of just how much trade it does with the U.S. Of course, we haven't seen that extended

00:52as such to our northern North American neighbors when it comes to Canada.

00:56Now, Mexico is currently facing a 25 percent tariff when it comes to non-U.S. MCA-compliant goods.

01:02The threat on the table over the summer had been that that rate could ratchet up to 30 percent against Mexico.

01:09So we're going to have to see how this unfolds.

01:11Important to keep in mind here that the tariffs imposed on Mexico actually aren't imposed under the so-called

01:17reciprocal tariff regime through IEPA, the International Emergency Economic Powers Act.

01:21The tariffs are imposed through IEPA, but they're over fentanyl concerns and concerns with the border.

01:26And that's why we're watching really closely what sort of concessions could be made there on Mexico's part

01:31in a bid to try to make progress to meet President Trump's demands.

01:34Now, you mentioned Canada. Of course, we're watching that closely.

01:37President Trump declining to tell reporters on Air Force One whether or not this additional 10 percent tariff

01:42will extend to U.S. MCA-compliant goods. Of course, there's a 35 percent tariff on non-U.S. MCA-compliant goods

01:49currently in place. But, David, that does not extend to some of those sector-specific tariffs.

01:53There is a whopping 50 percent tariff on Canadian steel and aluminum, which we know is a big point of contention

01:59between the two economies.