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Tariffs

Mexico Close to Striking a Deal on US Steel Tariffs, Bloomberg Reports

Strategic Insights

— 1 min read

Trade negotiations between the United States and Mexico are nearing a resolution that could alleviate crushing duties on Mexican steel imports essential to U.S. automakers and other industries. A quota system is being developed to reduce tariffs on a certain volume of steel imports from Mexico, with a proposed tariff-free steel quota of 2.79 million metric tonnes per year, equivalent to about 88% of Mexico's steel exports to the United States last year.

Key Takeaways:

  • The United States and Mexico are close to agreeing on a quota system to reduce tariffs on Mexican steel imports, with a proposed tariff-free steel quota of 2.79 million metric tonnes per year.
  • The quota would be based on Mexico's export volumes between 2015 and 2017, which would predate a surge in imports and a slowdown tied to the pandemic.
  • The proposed quota would alleviate crushing duties for Mexican steel imports essential to U.S. automakers and other industries.
  • A threshold of 2.79 million metric tonnes per year would represent about 88% of Mexico's steel exports to the United States last year, which totaled 3.19 million metric tonnes.
  • Steel imports from Mexico under any threshold would avoid the 50% tariff but are still expected to be hit with a 10% baseline charge.
  • Amounts above the threshold would be subjected to the full 50% duty.
  • The trade talks have been ongoing, with Economy Minister Marcelo Ebrard traveling to Washington, D.C. to hold talks with U.S. officials.
  • The Mexican government has argued that tariffs on Mexican steel and aluminum are unwarranted due to a trade surplus with the United States.

Statistics:

  • 2.79 million metric tonnes per year: proposed tariff-free steel quota
  • 88%: share of Mexico's steel exports to the U.S. last year represented by the proposed quota
  • 3.19 million metric tonnes: total steel exports from Mexico to the U.S. last year
  • 10%: baseline charge on steel imports from Mexico under any threshold
  • 50%: full duty on steel imports from Mexico above the threshold

Sources:

  • Bloomberg news agency
  • Mexico News Daily
  • United States Department of Commerce
  • Economy Minister Marcelo Ebrard's statement
  • President Claudia Sheinbaum's statement
  • USMCA trade agreement
  • Bloomberg article "US, Mexico eye import quota in trade talks on steel deal" (https://www.bloomberg.com/news/articles/2025-06-24/us-mexico-eye-import-quota-in-trade-talks-on-steel-deal)

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