Trump Weighs Scaling Back Steel, Aluminum Tariffs

President Donald Trump plans to scale back certain Section 232 steel and aluminum tariffs, reviewing affected products, halting further expansion, and focusing on targeted national security investigations amid US consumer cost and inflation concerns. The tariffs have significantly impacted Mexico’s steel and aluminum sectors, prompting industry and policymakers to stress risks to domestic competitiveness. In response, Mexico is strengthening industrial capacity, supporting local manufacturers, and engaging in USMCA technical discussions on rules of origin, traceability, and energy policy. 

President Donald Trump plans to scale back some tariffs on steel and aluminum products, according to a report by the Financial Times citing people familiar with the matter. Senior officials at the Commerce Department and the Office of the US Trade Representative believe the tariffs are raising costs for consumers, including everyday goods such as pie tins and food and beverage cans, the report said. 

The administration is reviewing the list of affected products and is expected to exempt certain items, halt further expansion of the tariff lists and instead launch more targeted national security investigations on specific products. The potential adjustment comes amid voter concerns about inflation and living costs ahead of the November midterm elections. A recent Reuters/Ipsos poll found that 30% of US citizens approve of Trump’s handling of rising living costs, while 59% disapprove, including nine in 10 Democrats and one in five Republicans.

Steel, Aluminum Tariffs

In 2025, President Donald Trump expanded tariffs on steel and aluminum under Section 232 of the Trade Expansion Act of 1962, raising rates to 50% on imports from nearly all trading partners. Since June, Mexican steel and aluminum exports to the United States have faced the 50% tariff, although they are exempt from separate tariffs imposed under the International Emergency Economic Powers Act.

The administration eliminated all country exemptions and expanded the list of covered derivative products, adding more than 400 additional product codes in August. Tariffs apply alongside most-favored nation duties and other trade remedies.

Mexico remains one of the top US steel suppliers. In 2024, Mexican steel exports to the United States totaled $3.53 billion, accounting for 11% of total US steel imports. From January to July 2025, the value of US steel imports from Mexico fell 29% year over year to US$1.59 billion. Mexican aluminum exports to the United States reached US$862.6 million in 2024, representing 4% of total aluminum imports. In the first seven months of 2025, aluminum imports from Mexico declined 20% to US$403 million.

Mexico Response to Tariffs

In December, Mexico’s Senate warned that the country must implement reciprocal measures if the United States fails to remove tariffs on Mexican steel imposed under Section 232. The position is detailed in the Senate’s Sectoral Diagnostic Summary of USMCA. According to the report, eliminating Section 232 tariffs is essential to restoring genuine free trade in North America under the USMCA. Should negotiations fall short, Mexico is prepared to respond with equivalent countermeasures to defend its industrial base and ensure the competitiveness of its domestic steel industry in global markets.

Mexican industry leaders quickly reacted to the Senate warning. Víctor Martínez, President, CANACERO, and CEO, ArcelorMittal Mexico, emphasized that the US tariffs pose serious risks to the sector. He noted that the measures are economically unjustified given the United States’ steel trade surplus with Mexico. Citing US industry data, Martínez highlighted that while steel prices in Mexico declined across 13 benchmark products, prices in the United States rose during the same period, undermining claims that Mexican imports threaten US national security. He also stressed the need for Mexico to maintain a coordinated industrial policy to mitigate the impact of external trade pressures on jobs and domestic production.

One of the main reasons for the tariffs is that US authorities claim subsidized overcapacity from non‑FTA countries, mainly China, has distorted global markets, intensified unfair competition, and increased imports of manufactured goods, which they argue justifies the measures. Mexican policymakers have criticized this rationale as overly broad, noting that Mexico itself meets fair trade obligations under USMCA and has a minimal impact on US national security, making the tariffs economically unjustified in their view.

Martínez attributed the persistence of Section 232 tariffs to domestic political pressures in the United States and broader attempts to counter non‑FTA overcapacity. He called for a shift away from a unilateral national security framework toward a regional security approach, anchored in trilateral dialogue and coordinated trade policy among North American partners. He also emphasized the importance of reinforcing Mexico’s engagement in technical discussions under USMCA to ensure rules of origin, energy policies, and traceability standards support long-term industrial competitiveness.