If the United States decides to impose again the 25 percent tariffs on steel and 10 percent on Mexican aluminum exported to the US, there will be trade retaliation from Mexico, according to the head of the Ministry of Economy, Raquel Buenrostro, adding that the United States has more interests to lose in the dispute.
“Mexico ‘challenges’ the United States to apply tariffs on steel: ‘The most affected would be them,’” headline the Mexican newspaper El Financiero. “Steel tariffs put more pressure on the US than on Mexico,” reported the Mexican magazine Expansión.
“Tit for tat: Mexico would apply the same 'dose' to the US if it imposes tariffs on steel,” Forbes published, after Buenrostro's press conference on Tuesday.
The meeting with the press in Mexico was held after the working meeting of Mexican officials with their counterparts from the United States Trade Representative (USTR) to continue the dialogue and cooperation between both nations and strengthen the steel industry in the region.
The Mexican position regarding trade retaliation was made almost two weeks after the virtual meeting with Katherine Tai where Mexico was warned that the United States could impose tariffs again on Mexican exports of metals if Mexico did not take urgent measures to stop the continuous increase in the export of these products to United States territory.
Trade differences between the two USMCA partners have dragged on for more than a year. In May 2018, citing National Security issues, the United States imposed tariffs of 25 percent on steel and 10 percent on aluminum imports from the European Union, Canada and Mexico. After mirror retaliation, an agreement was reached in May 2019 to eliminate those levies. Mexico and the United States committed to monitoring trade in these products.
According to the Mexican official, the United States' claims about the alleged triangulation of Chinese steel from Mexico to the United States are complaints motivated by political issues ahead of the November presidential elections.
Mexico is deficient in steel. Data from the World Steel Association from 2023 show that for every metric ton (mt) of liquid steel that Mexico produces, the United States produces 4.4 mt, Japan almost 5 mt, India almost 7.0 mt and China produces 56 mt.