{"id":20359,"date":"2025-09-22T12:05:30","date_gmt":"2025-09-22T17:05:30","guid":{"rendered":"https:\/\/puertointerior.guanajuato.gob.mx\/blog\/?p=20359"},"modified":"2025-09-22T12:10:15","modified_gmt":"2025-09-22T17:10:15","slug":"mexican-steel-tariff-shifts-could-have-mixed-effects-on-industry","status":"publish","type":"post","link":"https:\/\/puertointerior.guanajuato.gob.mx\/blog\/2025\/09\/22\/mexican-steel-tariff-shifts-could-have-mixed-effects-on-industry\/","title":{"rendered":"Mexican steel: Tariff shifts could have \u201cmixed effects\u201d on industry"},"content":{"rendered":"<h2 class=\"Page-subHeadline\" style=\"text-align: justify\">Mexico will impose tariffs on around 1,400 imported products from countries with which it does not have a trade agreement, according to Mexican government officials, in a move that industry sources say signals alignment with the US but could have \u201cmixed effects\u201d for the steel industry.<\/h2>\n<p style=\"text-align: justify\">Key takeaways:<\/p>\n<ul class=\"wp-block-list\" style=\"text-align: justify\">\n<li>Mexico plans to impose new tariffs of 10-50% on 1,400 products from countries without a trade agreement to bolster domestic production.<\/li>\n<li>The move is seen as an attempt to align with the US ahead of USMCA renegotiations but could have mixed effects on the domestic steel industry.<\/li>\n<li>Despite government efforts to fortify the sector through tariffs and import restrictions, Mexican steel prices continue to decline.<\/li>\n<\/ul>\n<h2 id=\"h-mexico-s-new-tariff-plan\" class=\"wp-block-heading\" style=\"text-align: justify\">Mexico\u2019s new tariff plan<\/h2>\n<p style=\"text-align: justify\">The proposed tariffs will range from between 10 and 50%. And will target mostly Asian countries, multiple news outlets report. Chinese cars are also expected to receive a 50% tariff in 2026.<\/p>\n<p style=\"text-align: justify\">Currently, Mexico imposes a 20% tariff on Chinese automotives.<\/p>\n<blockquote>\n<p style=\"text-align: justify\">\u201cLet us stop importing what we can produce here,\u201d Mexican President Claudia Sheinbaum Pardo said in a press conference Wednesday, September 10. \u201cThat is why tariffs are being raised within the framework of the World Trade Organization for all countries with which we do not have a treaty.\u201d<\/p>\n<\/blockquote>\n<p style=\"text-align: justify\">The tariffs will include 1,400 products, the Undersecretary of Revenue Carlos Lerma Cotera said at a press conference on Tuesday September 9. And will combat trade imbalances with other countries.<\/p>\n<blockquote>\n<p style=\"text-align: justify\">\u201cWe are [imposing tariffs] because we are interested in [helping] the textile industry to fully recover, the shoe industry to fully recover,\u201d Sheinbaum Pardo said September 10. The planned tariffs will also counter \u201cthe effects [on] the automotive industry\u2026as a result of the tariffs imposed by the United States.\u201d<\/p>\n<\/blockquote>\n<h2 id=\"h-fortifying-the-domestic-mexican-steel-industry\" class=\"wp-block-heading\" style=\"text-align: justify\">Fortifying the domestic Mexican steel industry<\/h2>\n<p style=\"text-align: justify\">Mexico is currently subject to a 50% tariff on steel and aluminium, a 25% tariff on auto parts and a 25% tariff on automobiles by the US.<\/p>\n<p style=\"text-align: justify\">Year to date, Mexican steel exports to the US were down by 20.2% compared with 2024 at 1.1 million tonnes. This is according to the most recent data published by Mexican steel association Canacero.\u00a0Overall exports slipped by 14.1% to 1.56 million tonnes year to date compared with 2024.<\/p>\n<p style=\"text-align: justify\">The additional\u00a0tariffs on automobiles\u00a0will allow \u201cmore vehicles [to be] produced in Mexico and fewer [to be] imported,\u201d the president said.<\/p>\n<p style=\"text-align: justify\">Previously, Sheinbaum Pardo\u00a0hinted last week that Mexico could implement sweeping tariff measures to fortify its domestic steel industry.<\/p>\n<blockquote>\n<p style=\"text-align: justify\">\u201cDuring President [Andr\u00e9s Manuel] Lopez Obrador\u2019s term, tariffs were imposed on all countries with which we do not have a trade agreement on steel imports,\u201d Sheinbaum Pardo said on September 5. \u201cSo, we are considering imposing, as part of the Plan Mexico we\u2019ve proposed since we came into office, some tariffs on countries with which we do not have a trade agreement.\u201d<\/p>\n<\/blockquote>\n<h2 id=\"h-government-measures-and-market-reaction\" class=\"wp-block-heading\" style=\"text-align: justify\">Government measures and market reaction<\/h2>\n<p style=\"text-align: justify\">Mexico has already undertaken trade defense measures to combat steel dumping.\u00a0In April, Mexico deregistered 1,062 import licenses.<\/p>\n<p style=\"text-align: justify\">And under Sheinbaum Pardo\u2019s Plan Mexico,\u00a0several initiatives to limit the country\u2019s dependence on steel imports have been implemented.<\/p>\n<p style=\"text-align: justify\">Sources told Fastmarkets that the measures taken by the government have caused import prices to \u201cdouble\u201d in recent months.<\/p>\n<blockquote>\n<p style=\"text-align: justify\">\u201cHot-rolled coil imports are down\u2026down bad,\u201d a Mexico-based distributor said.<\/p>\n<\/blockquote>\n<p style=\"text-align: justify\">According to Canacero, steel imports in July fell by 14% from the same month in 2024 to 1 million tonnes. From January through July, imports fell by 13.1% from the same period in 2024 to 6.54 million tonnes.<\/p>\n<h2 id=\"h-how-tariffs-affect-mexican-steel-prices\" class=\"wp-block-heading\" style=\"text-align: justify\">How tariffs affect Mexican steel prices<\/h2>\n<p style=\"text-align: justify\">The\u00a0steel hot-rolled coil index, delivered Monterrey, Mexico\u00a0was calculated at 12,740.01 pesos ($689.92) per tonne on Thursday, September 11. It was down 1.29% from 12,906.47 pesos per tonne a week before.<\/p>\n<p style=\"text-align: justify\">Steel reinforcing bar (rebar), delivered Monterrey, Mexico\u00a0was assessed between 13,800-14,150 pesos per tonne on September 11. It fell 0.71% from 14,000-14,150 a week before.<\/p>\n<h2 id=\"h-aligning-with-the-us-ahead-of-usmca-negotiations\" class=\"wp-block-heading\" style=\"text-align: justify\">Aligning with the US ahead of USMCA negotiations<\/h2>\n<p style=\"text-align: justify\">Mexico\u2019s revision to its tariff slate is an attempt to align itself with the US ahead of the renegotiation of the United States-Mexico-Canada (USMCA) trade agreement, one producer told Fastmarkets.<\/p>\n<blockquote>\n<p style=\"text-align: justify\">\u201cI see this as part of a larger negotiation process: Mexico is signaling alignment with the US by tightening measures on certain imports \u2013 particularly from China \u2013 in order to strengthen its trade position and, ultimately, to secure favorable terms as the USMCA comes up for review next year,\u201d the producer said.<\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: justify\">\u201cMexico is essentially trying to reduce friction with Washington and position itself as a more reliable partner under the agreement,\u201d the source added.<\/p>\n<\/blockquote>\n<h2 id=\"h-mixed-effects-on-the-domestic-mexican-steel-industry\" class=\"wp-block-heading\" style=\"text-align: justify\">Mixed effects on the domestic Mexican steel industry<\/h2>\n<p style=\"text-align: justify\">But the new measures could cause \u201cmixed effects\u201d on the domestic steel industry.<\/p>\n<blockquote>\n<p style=\"text-align: justify\">\u201cOn one hand, higher tariffs may help support domestic production and regional supply chains,\u201d the source said. \u201cOn the other hand, they could create short-term challenges in terms of input costs and availability for manufacturers that have relied on lower-cost imports.\u201d<\/p>\n<\/blockquote>\n<p style=\"text-align: justify\">Mexico\u2019s additional tariffs add to an already declining trade environment, one distributor told Fastmarkets.<\/p>\n<blockquote>\n<p style=\"text-align: justify\">\u201cI believe the [new] measures are going to affect the general market [in Mexico] a lot,\u201d the distributor added. Previous measures by the government have \u201calready [affected]\u201d market dynamics in Mexico, the source said.<\/p>\n<\/blockquote>\n<h2 id=\"h-have-efforts-to-fortify-the-mexican-steel-sector-worked\" class=\"wp-block-heading\" style=\"text-align: justify\">Have efforts to fortify the Mexican steel sector worked?<\/h2>\n<p style=\"text-align: justify\">Yet the attempts to fortify the domestic industry have done little to curb price declines. \u201cPrices keep going down,\u201d according to the distributor.<\/p>\n<p style=\"text-align: justify\">The actions by the government should strengthen the domestic industry, the source said, \u201cbut we are not seeing signs of that.\u201d<\/p>\n<p class=\"has-background\" style=\"text-align: justify\">Interested in all things steel? If so,\u00a0visit our hub to find steel prices, news and analysis covering the global steel and steel raw material markets.<\/p>\n<p>Publicado originalmente por:\u00a0<a href=\"https:\/\/www.fastmarkets.com\/insights\/mexican-steel-tariff-shifts-could-have-mixed-effects-on-industry\/\">https:\/\/www.fastmarkets.com\/insights\/mexican-steel-tariff-shifts-could-have-mixed-effects-on-industry\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mexico will impose tariffs on around 1,400 imported products from countries with which it does not have a trade agreement, according to Mexican government officials, in a move that industry sources say signals alignment with the US but could have \u201cmixed effects\u201d for the steel industry. Key takeaways: Mexico plans to impose new tariffs of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":10602,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[20],"tags":[],"class_list":["post-20359","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economic-development"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Mexican steel: Tariff shifts could have \u201cmixed effects\u201d on industry - Blog | GPI NEWS<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/puertointerior.guanajuato.gob.mx\/blog\/2025\/09\/22\/mexican-steel-tariff-shifts-could-have-mixed-effects-on-industry\/\" \/>\n<meta property=\"og:locale\" content=\"es_MX\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mexican steel: Tariff shifts could have \u201cmixed effects\u201d on industry - Blog | GPI NEWS\" \/>\n<meta property=\"og:description\" content=\"Mexico will impose tariffs on around 1,400 imported products from countries with which it does not have a trade agreement, according to Mexican government officials, in a move that industry sources say signals alignment with the US but could have \u201cmixed effects\u201d for the steel industry. 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