CANACERO Backs Sheinbaum’s New Tariff Reforms

CANACERO has expressed its support for the recent approval by the Mexican Congress of reforms to the General Import and Export Tax Law (LIGIE), initiated by President Claudia Sheinbaum. The legislation increases tariffs on imports from countries lacking trade agreements, including steel products.

Amid a 50% decline in Mexican steel exports to the United States following the implementation of Section 232 tariffs, record-low production and consumption between January and October 2025 compared to the same period in 2024, and continued pressure from unfair trade practices by some Asian countries, CANACERO described the new tariffs as a vital measure to stabilize the sector. “They bolster domestic production, support import substitution, and promote local content, strategic objectives outlined in the Mexico Plan,” the chamber said in a statement.

The organization also praised the Mexican government for implementing policies consistent with those of Mexico’s trading partners, advancing the goal of genuine North American regionalization free from tariffs.

Mexico Targets Asian Goods

This week, Mexico’s Congress approved raising tariffs to as high as 50% starting in 2026. According to Mexican authorities, the broader tariff initiative aims to bolster local industry, protect jobs, and strengthen the domestic market by applying duties across a wide range of sectors.

The plan originally targeted 1,463 tariff items, covering both previously taxed and untaxed products. Following review with the Ministry of Economy, 391 items retained existing tariffs, while adjustments were made based on import volumes and sourcing from countries with free trade agreements. The revised package removed 115 classifications, added 115 new ones, and reduced tariffs to 5% for 104 items to align with Mexico’s main trading partners.

Key sectors such as automotive, aluminum, and vehicles largely maintained their tariffs, though some auto parts and distributor-related categories were removed. Overall, about two-thirds of the package saw an average 28% reduction compared with the president’s original proposal, with more than 60% of the initial plan modified during committee deliberations.

The decision comes amid US pressure on Mexico to limit commercial ties with China, despite warnings from domestic business groups that higher tariffs could increase costs.

Mexican Steel Loses US Market Share Amid Tariffs

Mexican steel exports to the United States have sharply declined following the implementation of US tariffs. According to CANACERO. Mexico’s share of the US steel market fell from 2.3% in 2024 to under 1% by July 2025. Around 93% of Mexican exports to the United States are semi-finished products made in domestic factories that rely on raw materials such as scrap metal and natural gas sourced from the United States.

Since June 3, 2025, the United States has imposed a 50% tariff on steel and aluminum imports from Mexico and other countries. CANACERO highlighted that Mexican steel exports contribute directly to the US economy by creating jobs and adding value across the supply chain. Over the past two decades, steel trade between the two countries has been integrated, supporting industries such as automotive, construction, energy, and advanced manufacturing.

CANACERO also noted that North America currently lacks sufficient domestic capacity to meet regional steel demand. In 2024, the continent produced 106.1 million tons of crude steel, about 75% of its capacity, while consumption reached roughly 130 million tons. CANACERO stressed this shortfall underscores the need for increased investment in steel production to achieve regional self-sufficiency, strengthen infrastructure, support defense capabilities, and maintain competitiveness, particularly against global producers such as China.