Don’t Expect A U.S.-Mexico Trade Deal Any Time Soon – Jalopnik

Happy Friday! It’s October 16, 2026, and that is The Morning Shift — your every day roundup of the highest automotive headlines from world wide, in a single place. This is the place you will discover crucial tales which can be shaping the best way Americans drive and get round.

In this morning’s version we’re commerce talks between the U.S. and Mexico, in addition to salespeople getting out of the dealership recreation. We’ll additionally have a look at U.S. plans to purchase oil from shadowy sources, and Toyota’s continued Canadian manufacturing. 

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The United States has been making an attempt to work out a commerce take care of Mexico, the nation that produces a lot of our so-called “Detroit Three” vehicles. The deal is predicated round decreasing tariffs on vehicles and metals, however Commerce Secretary Howard Lutnick has apparently determined he would not wish to do this, really. The deal is accordingly stalled. From Reuters: 

Oct 15 (Reuters) – Progress towards a US-Mexico tariff deal has stalled after opposition ​from Commerce Secretary Howard Lutnick, the Wall ‌Street Journal reported on Thursday, citing individuals accustomed to the talks.

The US and Mexico had been ​closing in on a deal that ​would cut back US levies on metal, aluminum ⁠and vehicles in return for concessions from ​Mexico, however progress has slowed as a result of disagreements ​over the American levies on autos and metals, the report stated.

Lutnick has opposed important reductions within the ​25% tariff on Mexican vehicles and the ​50% levies on metal and aluminum, and he objected ‌to ⁠reductions in tariffs on completed merchandise product of metal and aluminum, the Journal added.

Man, I want I had a job the place I might simply reverse my selections on the eleventh hour, torpedo my very own tasks, and nonetheless receives a commission. What does Lutnick make as Commerce Secretary? Google tells me that is a quarter-million-dollar gig. I’ll do exactly as dangerous a job for half the cash. 

Dealership gross sales has all the time been a high-turnover trade, however that turnover charge is skyrocketing. A brand new assessment of Canadian dealerships confirmed increasingly of us are leaving the trade, and the parents who work for commissions are first out the door. From Automotive News: 

Turnover at Canadian auto dealerships rose sharply in 2025, led by gross sales consultants whose annualized turnover charge jumped 21 share factors to 54 per cent, in response to the Canadian Automobile Dealers Association’s (CADA) 2026 National Workforce Study.

Overall annualized turnover throughout dealership positions climbed 5 factors to 36 per cent in 2025, erasing the four-point decline recorded in 2023 and pushing turnover above the pre-2023 stage, the examine stated.

The findings, based mostly on payroll knowledge from a report 629 taking part dealerships, level to a workforce being reshaped by altering vehicle-market economics, a generational shift and rising strain on dealership compensation, the examine stated.

Automotive News credit the tip of pandemic-era automobile gross sales for the shift, the place sellers can now not discover patrons for any automobile at any value level — the chip shortages are lengthy over. But the chip shortages have been over; what’s new is that vehicles are rising in value as wages fall. There are merely fewer viable patrons on the market for the common new automobile. 

Have you heard about this “oil” factor? Apparently we’d like a bunch of it, and it is all tied up within the Strait of Hormuz — a strait we shut down for completely regular and intelligible causes, and in addition a strait by which oil is 100% flowing due to our blockade. Don’t give it some thought too onerous. Anyway, now we’re lifting restrictions on oil that comes through black-market tankers, as an indication of how effectively issues are going. From Reuters: 

HOUSTON, Oct 15 (Reuters) – Brent crude was little modified on Thursday as traders weighed potential US ​steps to ease restrictions on the world’s “shadow fleet” of tankers, whereas battle within the Middle East saved ‌a geopolitical danger premium out there.

…

The shadow fleet discussions are occurring days after ​President Donald Trump briefly lifted sanctions on Russian diesel gas to ease a surge in costs globally. The new ​talks centre on Washington doubtlessly permitting “legal oil” to move on beforehand sanctioned vessels, a US official stated.

The ⁠Department of Energy stated any transfer to alleviate sanctions on the shadow fleet wouldn’t assist Russia transfer oil or oil ​merchandise. The Treasury Department referred inquiries to the Department of Energy.

The apparent query is whether or not it will imply the U.S. will begin shopping for oil from Russia, which the Trump Administration says is not on the desk. Also, we’re doing that too, but it surely’s advantageous and completely separate from this. Don’t give it some thought too onerous. 

Right now, U.S. tariffs have automakers reconsidering their world product plans. Some manufacturing is being shifted to the States, whereas different fashions merely aren’t coming right here in any respect. But as automaker after automaker alerts its plans to ease manufacturing in tariff-afflicted Canada, Toyota is plowing forward with its factories in Ontario. From Bloomberg:

Toyota Motor Corp.’s newest compact crossover will roll out of a plant in Ontario beginning in December, an indication of the Japanese automaker’s dedication to creating vehicles in Canada at a time when US rivals are shrinking manufacturing within the nation and newly arrived Chinese rivals are ramping up gross sales.

The up to date, hybrid-only Lexus NX is one in every of three fashions made at Toyota’s 38-year—outdated manufacturing facility complicated in Cambridge, Ontario, together with the Toyota RAV4 crossover and Lexus RX SUV. While a few of these are bought regionally, about 85% are earmarked for export — principally to the a lot bigger and extra profitable US market.

Everything outdated is new once more. Lexus was born from U.S. tariffs, which made cheaper Japanese vehicles unprofitable to promote within the States and ushered within the period of luxurious marques. Now, it is as soon as once more Lexus vehicles consuming tariffs. 

Has any Dude ever Rocked so onerous as John Brown?

Gas costs are, say it with me children, steady! We’re in actual Nothing Ever Happens territory as soon as once more, now that issues have occurred and created a brand new established order.