Steel Prices Soar as U.S. Tariffs Disrupt Mexico’s Export Market
The Mexican steel industry is under pressure as the United States reinstates a 25% tariff on steel imports, effective March 12, 2025. This policy, originally introduced in 2018 and briefly exempted under trade agreements, now impacts all exporting nations, including Mexico.
The renewed tariffs have triggered a contraction of approximately 300,000 tons in Mexican steel exports to the U.S., nearly 10% of last year’s total exports of 3.2 million tons. Steel prices in the U.S. have surged from $650 per metric ton to $1,000 due to the tariffs, a rise exceeding 50%.
Guillermo Vogel, vice president of Tenaris and former president of Canacero, warned that Mexican exporters risk accusations of dumping if they sell steel at lower prices to offset tariff costs. Such claims could lead to reciprocal tariffs from Mexico, further complicating trade relations.
Mexico exported $5.58 billion worth of iron and steel to the U.S. in 2022, with these products playing a key role in construction, automotive manufacturing, oil extraction, and aerospace industries.
However, domestic demand for steel remains weak as major infrastructure projects like the Tren Maya and Olmeca Refinery wind down. President Claudia Sheinbaum’s promise to build one million homes may boost demand for rebar consumption, but broader infrastructure plans remain uncertain.
Mexico’s Steel Industry Faces Challenges
The trade imbalance between Mexico and the U.S. has widened significantly. While Mexico exported 3 million tons of steel to the U.S. in 2024—a decline from previous years—U.S. exports to Mexico rose by 10%, reaching 4.5 million tons and creating a surplus of $4 billion in favor of the U.S.
Mexican steelmakers are expanding production capacity to meet nearshoring-driven demand but face oversupply risks if export opportunities shrink further. Ternium’s new slab mill in Nuevo León and Deacero’s $1 billion investment aim to add over five million tons of annual production by 2026.
The tariffs represent a significant challenge for Mexico’s steel sector, which must navigate reduced export volumes, rising costs, and uncertain domestic demand while maintaining competitiveness in a shifting global market. As negotiations continue, Mexican manufacturers face tough decisions on adapting to these economic realities.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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