Mexico Seeks to Avoid U.S. Tariffs on Steel and Aluminum

The government of Mexico, led by Claudia Sheinbaum, is negotiating with the U.S. to avoid 25% tariffs on steel and aluminum imports. Unlike the European Union and Canada, which responded with reciprocal measures, Mexico is seeking a negotiated solution to protect key sectors such as the automotive and metalworking industries.

Impact on Exports

Since these tariffs took effect on March 12, Mexican exports have remained resilient. In 2024, steel and aluminum accounted for 2.2% of the country’s total exports, with 85% of that destined for the U.S.

U.S. Concerns and Transparency Efforts

The U.S. has also expressed concerns about possible transshipment of Chinese steel through Mexico, prompting demands for greater transparency. However, Mexico asserts that most of its steel comes from the U.S., China, and Germany.

Mexico’s Strategy in Negotiations

As negotiations continue, Mexico aims to leverage its position as the second-largest steel supplier to the U.S. to secure an exemption from the tariffs.

“Mexico’s strategy is based on dialogue and cooperation, aiming to protect its industries while maintaining a strong trade relationship with the U.S.” – Trade Ministry of Mexico