Steel, Aluminum, Auto Tariffs Dominate Sheinbaum-Trump Call

President Claudia Sheinbaum announced that during a recent call with US President Donald Trump on April 16, they discussed the imposition of tariffs on Mexican exports of steel, aluminum, and automotive products. Sheinbaum stated that while no final agreements were reached, Mexico presented strong arguments to defend its industrial sector.

“In the case of steel and aluminum, we emphasized that Mexico runs a trade deficit; we import more from the United States than we export,” she said. She reaffirmed that goods traded under USMCA should continue to benefit from zero tariffs, and only products outside the agreement should be reviewed under the "most-favored-nation" clause, as established by the World Trade Organization.

Tariffs on Aluminum, Steel

On March 12, 2025, the United States reinstated tariffs of up to 25% on steel and aluminum imports from key trade partners, including Mexico, Canada, the European Union, Japan, South Korea, the United Kingdom, Australia, Argentina, and Brazil. This decision followed Trump’s termination of alternative agreements with these countries, which he argued were inadequate in addressing the issue of excess steel capacity and distorted pricing, a national security concern. As a result, global aluminum imports worth US$27.4 billion and steel imports valued at US$31.7 billion have been impacted.

In 2024, Mexico exported US$16.6 billion worth of steel and aluminum products, much of which was destined for the United States. These exports, ranging from flat-rolled products to waste and scrap, are critical to both the United States and Mexico. Over the past decade, Mexican steel exports to the United States have increased significantly, now accounting for 78.1% of Mexico’s total steel exports.