Is Trump "softening his stance"? The US and Mexico are reportedly expected to reach an agreement on "exempting steel tariffs"

According to sources familiar with the matter, the US and Mexico are expected to reach an agreement that would eliminate the 50% tariff imposed by former US President Trump on certain steel imports, reviving a similar deal from Trump's first term.

Trump was not directly involved in the negotiations, but any agreement would require his approval. The talks were led by Commerce Secretary Howard Lutnick, the sources said.

The agreement has not yet been finalised, the sources added.Under the current terms, US buyers would enjoy duty-free treatment as long as they keep Mexico's total steel imports within a quota based on historical trade levels.

The new cap would be higher than the limit allowed under the similar agreement during Trump's first term, though these so-called "quotas" were never fixed numbers but rather designed to "prevent surges," according to the sources.

US Commerce Department data shows that last year, the US imported approximately 3.2 million mt of steel from Mexico, accounting for 12% of total US steel imports. During Trump's first term, the US and Mexico reached a deal in 2019 agreeing to prevent imports from exceeding the average level from 2015 to 2017.

As of press time, neither the White House nor the office of Mexican President Claudia Sheinbaum had responded to requests for comment.

At an event on Tuesday, Mexican Minister of Economy Marcelo Ebrard said he told US officials during a meeting last week that imposing steel tariffs on Mexico was unjustified, as the US exports more steel to Mexico than it imports. Last Friday, he also posted a photo showing him shaking hands with a smiling Lutnick in Washington.

"We are waiting for their response because last Friday we provided them with details of our arguments, and we are right," Ebrard told reporters on Tuesday."So we will wait for their response, most likely this week."

The negotiations come as Sheinbaum seeks to reach an understanding with Trump on border migration and drug smuggling, issues for which Trump has demanded Mexico take action. Meanwhile, Sheinbaum confirmed on June 9 local time that she would attend the upcoming G7 summit in Canada. She also mentioned the possibility of a bilateral meeting with US President Trump during the event.

Sheinbaum added that migration would be one of the topics discussed during the meeting. Currently, the Mexican Foreign Minister is coordinating the arrangements for various meetings, and has pointed out that in addition to a possible meeting with President Trump, President Sheinbaum will also hold bilateral talks with Canadian Prime Minister Carney.