Senate, CANACERO Push for Response to US Steel Tariffs

Mexico’s Senate emphasized the need to implement retaliatory measures if the United States does not remove tariffs imposed on Mexican steel under Section 232. This stance is outlined in the Sectoral Diagnostic Summary of USMCA, which the Senate will submit to President Claudia Sheinbaum. The report notes that eliminating Section 232 tariffs is crucial to restoring free trade in North America. If this objective is not achieved, Mexico should adopt equivalent reciprocal measures.

Last November, 17 working groups were convened by the Joint Committees on Economy and on Monitoring the Implementation and Review of USMCA, led by Senators Emmanuel Reyes and Waldo Fernández. The groups emphasized the need for coordinated federal action to reinforce Mexico’s steel industry, including active participation in USMCA technical committees focused on rules of origin, traceability, energy policies, and industrial strategy.

Impact of US Section 232 Tariffs

The United States imposed a 50% tariff on Mexican steel citing national security concerns. The report highlights the weaknesses in the current rules of origin, which do not sufficiently incentivize regional production or content within North America. At the same time, the document stresses that subsidized overcapacity in Asia has intensified unfair competition and increased imports of manufactured goods. 

One recommendation emerging from the discussions is to replace the national security framework with a regional security approach, fostering trilateral dialogue and coordinated trade policies.

Víctor Martínez, President, CANACERO, and CEO, ArcelorMittal Mexico, stressed that the US tariffs pose significant risks to the sector. He argued that the measures are economically unjustified given the US steel trade surplus with Mexico. Citing specialized US industry data, Martínez noted that while steel prices in Mexico declined across 13 benchmark products, prices in the United States rose during the same period. 

He attributed the Section 232 tariffs to political pressures and efforts to address Asian overcapacity, urging stronger Mexican trade policies and closer cooperation with the United States and Canada within a shared protective framework.

CANACERO Supports Tariffs on Asian Imports

While CANACERO opposes US tariffs, the chamber supports Mexico’s new tariffs targeting countries without trade agreements, particularly Asian nations. CANACERO endorsed Congress’ approval of reforms to the General Import and Export Tax Law (LIGIE), promoted by President Sheinbaum, which increased duties on steel and other imports.

The organization described the tariffs as a vital measure to stabilize the sector amid falling exports, record-low domestic production and consumption in 2025, and ongoing pressure from unfair trade practices. According to CANACERO, the measures will strengthen domestic production, encourage import substitution, and increase local content in line with the Mexico Plan.

CANACERO also praised the government’s efforts to align Mexico’s trade policy with North American partners, supporting deeper regional integration without tariff distortions.

The approved tariff package allows duties of up to 50% starting in 2026 and covers a broad range of products. After consultations with the Ministry of Economy, the final package reduced tariffs on some items to align with Mexico’s main trading partners while maintaining protections for key sectors such as steel, automotive, and aluminum.