On June 5, SteelOrbis reported that Mexico imposed 25 percent tariffs on steel and aluminum imports from the US.
According to a Mexican based source close to SteelOrbis, the tariffs will not be imposed on firms that are already participating in a tariff deferral program. The maquila industry operates under such a program. The maquiladora or maquila industry refers to companies primarily near the US-Mexico border that ship US steel and components on a duty-fee and tariff-free basis for further assembly, processing, or manufacturing and then export the assembled, processed or manufactured item. Materials, assembly components, and production equipment used in maquiladoras are allowed to enter Mexico duty-free.
Some reports estimate that US and Mexican companies operating within Mexico’s maquiladora industry account for 70-80 percent of the US-Mexican trade. Therefore, the Mexican tariffs on imported steel and aluminum from the US is expected to affect only 20-30 percent of all transactions between the two countries.