Mexican steel in the trade war between the U.S. and China

Mexico City, February 16.Mexican steel has acquired a key role in the trade war between the United States and China. The imposition of a 25% tariff by the U.S.

on steel imports has caused tensions that directly impact Mexico, one of the main exporters of this metal to the U.S. market.

Mexico at the commercial crossroads

Mexico faces a complex challenge due to its close trade relationship with the United States and its role in the global steel supply chain.

The Mexican steel industry exports a large part of its production to the U.S., taking advantage of the tariff benefits of the United States-Mexico-Canada Agreement (USMCA). However, the suspicion that Mexico could be serving as a bridge for Chinese steel has put this relationship at risk.

Accusations of triangulation and compensatory measures

The United States has expressed its concern about the possible steel triangulation, meaning that Chinese-origin steel enters Mexico and is then exported as a Mexican product, evading the tariffs imposed on China.

To avoid sanctions, the Mexican government has implemented compensatory quotas and reviews of Chinese steel imports, seeking to demonstrate its commitment to established trade rules.

Impact on the Mexican industry

Trade restrictions have caused uncertainty in the Mexican steel sector. Companies in the field face the increase in costs and the need to diversify markets for their products.

Additionally, the possibility that the U.S. imposes more tariffs on Mexican steel, under suspicions of triangulation, could affect the competitiveness of the national industry.

Bilateral collaboration to mitigate tensions

Amid these concerns, Mexico and the United States have agreed on joint measures to prevent unfair imports of steel and aluminum from China and other countries.

The goal is to strengthen North America's economic security and protect local industries from unfair trade practices.

Objectives of the tariffs

The Trump administration justified these tariffs by arguing that the massive entry of steel, especially from China, represented a threat to national security and the U.S. economy.

With a 25% tax on steel and a 10% tax on aluminum, the aim was to reduce import dependency and revitalize domestic production.

Impact on third countries

Although the measure was mainly aimed at China, other exporters, like Mexico, have also been affected.

Mexico, the third-largest steel exporter to the U.S. after Canada and Brazil, faces significant challenges due to these tariffs.

The Mexican steel industry has expressed concern about the possible losses and the need to find new markets.