Mexico Halts Retaliatory Action on U.S. Steel Tariffs Until April Deadline
Mexican President Claudia Sheinbaum announced yesterday that Mexico will wait until April 2 before deciding on reciprocal tariffs against the United States. This decision comes as US steel and aluminum tariffs took effect on March 12, imposing a 25% duty on metal imports worldwide.
“We will wait until April 2 and from then decide whether to apply reciprocal tariffs too,” Sheinbaum stated during her morning press conference. She emphasized that April 2 marks when the US government plans to implement a worldwide reciprocal tariff scheme.
The US Department of Commerce must deliver a comprehensive study on trade deficits to President Trump by this deadline. This report will include recommendations that could shape US tariff policies for the next four years.
Economy Minister Marcelo Ebrard has already conducted three visits to Washington to negotiate Mexico’s potential exclusion from these tariffs. Ebrard met with US Commerce Secretary Howard Lutnick on March 11 to address these concerns.
The expanded US tariffs affect nearly $150 billion worth of derivative products made from steel and aluminum. These range from nuts and bolts to bulldozer blades and automotive components. Trump raised the aluminum duty from 10% to 25% while terminating all country exemptions.
Mexico’s Response to US Steel and Aluminum Tariffs
Mexico maintains that the measures lack justification based on current trade patterns. The US actually exports more steel and aluminum to Mexico than it imports, creating a surplus favoring American producers.
Other trading partners have responded more aggressively. The European Commission unveiled retaliatory duties worth €26 billion on US products, set to begin next month in two phases.
The tariffs partly target Chinese steel production overcapacity. Previous Biden administration rules required steel from Mexico to be melted and poured in North America to qualify for duty-free treatment.
Sheinbaum promised ongoing dialogue with affected Mexican industrial sectors. “There is a very good relationship with all steel producers and those involved in aluminum production,” she noted.
Economic analysts suggest limited direct impact on Mexico’s economy, as steel and aluminum exports to the US represent only 1% of Mexico’s total exports and 0.26% of its GDP.
Key Facts
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