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Mexico and the United States are racing to reach an interim trade deal before the November elections. Talks focus on tariff relief, automotive content and Chinese investment.
Transcript
00:00It's Benzinga bringing Wall Street to Main Street.
00:02Mexico and the United States are racing to reach an interim bilateral trade deal before
00:07the November 3rd midterm elections as negotiations with Canada remain stalled, according to Reuters.
00:13The talks could give Mexico relief from some U.S. tariffs while addressing U.S. demands
00:18on automotive content and Chinese investment. A major hurdle is Section 232 tariffs, which
00:24impose 50% duties on Mexican steel and aluminum and 25% tariffs on vehicles. Automakers believe
00:32Washington could offer Mexico a 15% vehicle tariff with additional reductions for U.S. content,
00:38potentially lowering the effective rate to around 7%. Mexico is expected to consider ways to increase
00:44U.S. content in vehicles, including engines, electronics, and software. For all things money, visit Benzinga.com.
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