CANACERO Supports Tariffs on US Steel to Protect Mexican Industry

The National Chamber of the Iron and Steel Industry (CANACERO) reaffirmed its support for Claudia Sheinbaum’s administration, should it decide to impose tariffs on US steel products. This stance follows the significant rise in US steel exports to Mexico and the potential imposition of tariffs for alleged violations of USMCA.

CANACERO highlighted that from 2015 to 2023, bilateral trade in finished steel products resulted in an average annual surplus of 1.2Mt in favor of the United States. According to data annualized through November, this surplus has doubled, reaching unprecedented levels. Meanwhile, Mexican exports to the US dropped by 2%, creating a surplus of 2.4Mt, valued at over US$4 billion.

"The steel industry in Mexico is facing a critical challenge due to the significant rise in US exports of finished steel products, which breach the Joint Statement agreed upon by both nations. While Mexico has consistently supported regionalization and integration under USMCA, the current situation shows that the Mexican steel industry is being displaced," CANACERO emphasized.

The organization also addressed unfounded accusations that Mexico is being used as a conduit for Chinese steel into the United States. It cited data from the US Steel Import Monitoring and Analysis System (SIMA), which revealed that between January and November of the previous year, steel exports of Chinese origin from Mexico totaled only 580t, representing just 0.02% of the total. Moreover, 85% of steel exported by Mexico is produced domestically through melting and pouring processes.

CANACERO pointed out that Mexico has implemented concrete measures to safeguard the region from unfair practices. These include tariffs of up to 50% on imports from non-agreement countries, the introduction of an automatic import notification system with mill certifications, and ongoing investigations into unfair trade practices, such as anti-dumping cases and circumvention.

"We reaffirm that the USMCA and regional integration are the most effective tools to combat unfair trade practices from China, including circumvention, export subsidies to its industry, the overcapacity of Chinese steel, customs fraud, and other challenges," the organization concluded.