On Wednesday, the United States Department of Commerce confirmed progress in negotiations with the European Union regarding trade relations, while acknowledging ongoing complexities in talks with China.

Concurrently, Mexico has signaled potential retaliatory actions against the U.S. following the recent increase in tariffs on imported steel and aluminum.

Since taking office in January, President Donald Trump has implemented new tariffs that have strained relations with trading partners and initiated a series of trade negotiations.

The steel and aluminum sectors were the first to feel the impact, with tariffs initially set at 25% on March 12. As of Wednesday, those tariffs have increased to 50%.

Relations between the U.S. and China are especially strained, marked by escalating trade tensions.

The White House indicated that Trump and Chinese President Xi Jinping are likely to have a phone conversation this week.

However, on Wednesday morning, Trump posted a message on his social media platform, expressing skepticism about reaching a quick agreement, stating, "Xi is tough, and it's extremely hard to make a deal with him!!!"

In response, Chinese Foreign Ministry spokesperson Lin Jian reiterated China's consistent principles and position on the development of Sino-U.S. relations.

China's economy has been significantly affected by U.S. tariffs, with duties on some goods reaching as high as 145%.

In retaliation, China has applied tariffs of 125% on certain U.S. products.

A temporary de-escalation was agreed upon in May, when Trump suspended most tariffs on other countries until July.

However, the recent announcement to double the tariffs on steel and aluminum has reignited tensions.

At the same time, optimism was expressed in the negotiations with the European Union during a recent meeting in Paris.

U.S. Trade Representative Jamieson Greer met with European Commissioner for Trade Maros Sefcovic at the Organization for Economic Cooperation and Development (OECD) meeting.

Sefcovic noted that the increase in tariffs "does not help negotiations," but both sides confirmed that discussions were making progress.

Greer labeled the meeting as "very constructive."

In April, Trump had imposed a 10% tariff on nearly all trading partners in an effort to address practices the U.S. considers unfair.

With the new decree increasing import tariffs on steel and aluminum from 25% to 50%, Trump justified the move as necessary to bolster these industries and reduce perceived threats to national security.

Notably, the United Kingdom remains exempt from this increase, retaining the original 25% tariff.

In 2024, the United States imported approximately half of its steel and aluminum needs, primarily from Canada, followed by Brazil and Mexico, with products utilized in various sectors, including automotive and construction.

Argentina ranks as the sixth-largest supplier of aluminum.

Mexico, a partner in the North American Free Trade Agreement (NAFTA) alongside the U.S. and Canada, has voiced strong objections.

President Claudia Sheinbaum, who had previously opted for a measured response, indicated that the situation would change if the U.S. fails to reach an agreement.

She warned of forthcoming announcements next week regarding measures to protect the industry and jobs, although specifics were not disclosed.

Canadian Prime Minister Mark Carney condemned the 50% tariffs as "illegal and unjustified," promising to take time to formulate a response.

Amid these developments, the U.S. is also threatening to impose tariffs on additional goods, with imported aircraft parts being a potential target.

U.S. Secretary of Commerce Howard Lutnick stated that an analysis to establish the standard for tariffs on aircraft parts is expected to be completed by the end of the month.