House Ways and Means Republicans Praise USMCA After Meeting With Mexican Leader
House Ways and Means Committee members met with Mexico's Economy Minister Marcelo Ebrard about the upcoming sunset review of USMCA, and two Republicans on the committee said most of the conversation was about how useful the free trade agreement is.
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Rep. Ron Estes, R-Kan., said in a hallway interview at the Capitol Sept. 4: "The conversation was just how valuable USMCA is, not just for the United States, but also Mexico and Canada as well. And so a part of the discussion was just around some different provisions, some questions in terms of what was working, and how do we make sure it works better in the future?" He said the conversation was also about today's tariffs. Mexican goods that don't qualify for USMCA are subject to 25% tariffs, and USMCA-eligible cars, steel, aluminum and goods made from those metals, as well as some copper products, are subject to either 50% tariffs or 50% tariffs on the value of metal in a product that is not just a slab, rod or sheet of metal.
Similarly, Rep. Darin LaHood, R-Ill., said he starts "off with the premise that USMCA has been extremely beneficial to the three countries, [and] it was very bipartisan, and doesn't mean there aren't some irritants that we can work out."
Estes said they talked about Mexican actions in the energy sector and regulations on genetically modified corn, two disputes the U.S. brought. However, he said they didn't discuss the dispute that the U.S. lost at a panel, on how to calculate the value of non-North-American auto parts when determining regional value content.
LaHood said, "It's in, I think, everyone's benefit, that we resolve these irritants, get to a good place and continue the strong North American Alliance that we have between the three countries. So I have confidence that the Ways and Means Committee will play a constructive role in that process, working with the administration."
When asked if an exception to Section 232 metals tariffs for Mexico and Canada -- as existed during the first Trump administration and through the Biden administration -- was under consideration, the members' views diverged somewhat.
Estes said that he heard complaints in his district in August that Canadian producers can undersell U.S. producers because they can buy less expensive steel than U.S. manufacturers can. "So the [derivatives] tariffs were kind of to help leveling that out," Estes said.
However, he said, the cost burden for manufacturers that have to import aluminum from Canada, and are now paying 50% more for that "is an issue as well." He said these issues must be sorted through. "At the end of the day, we should be focused on, how do we get free and fair trade and free and fair competition? And we're not there yet," he said. "I mean, as we go through any change, you have some turbulence as you're going through that."
When LaHood was asked if Mexico should receive different treatment under Section 232 on steel, he said, "I know it's a discussion topic that we're looking at. I think there's a way to resolve this."
LaHood said he is glad Ebrard traveled to Washington. "I'm happy with the current relations with the Mexican government." He said Mexico has cooperated on fighting drug cartels, and noted that the U.S., Mexico and Canada will each host World Cup events in 2026. "It'll be the largest sporting event in the history of the world. I thanked him for that cooperation and partnership. It's going to showcase to the world the three countries working together. And so there's a lot of positive momentum in the relationship with Mexico right now. USMCA, I think, will harmonize well with that."