Chinese Steel Imports Rose 16.9% in November Ahead of New Tariffs

For every dollar Mexico exported in steel products to China in November, it imported US$660 worth of goods from the Asian nation. While Mexican exports recorded a significant percentage increase, the trade balance remains heavily weighted toward imports.

In November, Mexico’s volume of steel product exports (Chapter 72) to China increased by over 590% year-on-year, rising from 19t in 2024 to 129t in 2025. Of this volume, 92.9% consisted of metal scrap. The remaining 7.1% included small quantities of uncoated hot-rolled sheets, steel plates, and painted hot-rolled sheets.

Despite ranking as the 15th largest exporter of metal scrap globally, Mexico shipped only 1.2Mt in 2024, less than 10% of the 14.9Mt exported by the United States. In 2024, for every ton of scrap China imported from the world, Mexico imported 11.5t, according to Reportacero.

In contrast, Chinese steel exports to Mexico rose 16.9% in November, totaling 85,076t, an increase of 12,290t compared to the previous year. This growth occurred despite the existence of 21 active anti-dumping duties against Chinese steel in Mexico and 11 new investigations initiated in 2025, nearly double the figure from 2024.

Hot-rolled bars were the primary import, totaling approximately 18,850t and accounting for 19.8% of the volume. Other significant imports included chromium-plated flat-rolled products with 11.8% and silicon electrical steel used in transformers with 10.7%. These three categories accounted for 42.3% of the total volume imported for manufacturing. Other notable imports included 6,733t of CRNGO steel, used in motors and generators, and 3,350t of corrugated rebar. 

Impact of New Tariffs

Market analysts attribute the November rise in imports to inventory stockpiling ahead of price increases effective Jan. 1, 2026. The federal government issued a decree reforming the General Import and Export Tax Law, establishing new tariff rates for a broad range of industrial goods to regulate imports from nations lacking standing trade agreements with Mexico, such as China.

The decree significantly impacts the metals sector. Steel products, including lingots, flat-rolled products, and bars, are now subject to tariffs predominantly set at 35%, with specific items, such as certain steel rods, taxed at 50%. Stainless steel products face duties ranging from 20% to 50% depending on thickness and specification. Additionally, aluminum imports, including bars and profiles, are subject to duties between 10% and 35%, as reported by MBN.

The measure also includes a transitional article authorizing the Ministry of Economy to implement specific mechanisms for imports from non-FTA countries to guarantee the supply of inputs under competitive conditions. 

Following the publication, the China Chamber of Commerce and Technology Mexico (China Chamber Mexico) warned that the action could impact consumers and value chains. "We urge federal authorities to carefully review these measures, which will have direct consequences for the consumers and will reduce the competitiveness of value chains that use these inputs in Mexico,” the chamber stated.