The National Chamber of the Iron and Steel Industry (Canacero) rejected the U.S. government’s decision to impose and increase tariffs on steel imports from Mexico, which went into effect on Wednesday, June 4.
In a statement, the organization considered the measure unjustified , since ” the 25% and now 50% tariffs primarily affect its trading partners and the value chain in the region.”
This, he noted, is because China and other Asian countries are increasing subsidies and depreciating their currencies to avoid these taxes.
Canacero emphasized that Mexican steel does not pose a threat to the U.S. market; “on the contrary, we are complementary, and our country is completely open to U.S. exports.”
The organization emphasized that the United States maintains a bilateral steel trade surplus with Mexico of four billion dollars (million dollars) in finished products, which will increase in 2025 due to the decline in Mexican exports, which decreased by 50 percent in April and May alone.
“The best solution to combat global steel overcapacity and unfair trade practices is to work together as a region,” he said, adding that they trust in the negotiations being conducted by the Ministry of Economy (SE) “and in the urgent measures that will be established as a result.”
It’s worth noting that the Mexican steel industry is the 15th largest producer of steel globally, contributing 1.4% to the national Gross Domestic Product (GDP) and 6.9% to manufacturing GDP, while operating below the global average in terms of emissions.
Tariff adjustment, an “unsustainable” measure: Ebrard
On this issue, Marcelo Ebrard , head of the Ministry of Economy and Finance, described the 50% tariff increase on steel and aluminum as “unsustainable, unfair, and ineffective.” He indicated that he will hold a meeting with his U.S. counterparts next Friday, where he will present his arguments for excluding Mexico from this measure.
“We will express my opinion on Friday. I find it difficult to sustain this. So it is unfair, unsustainable, and we will present our arguments on Friday for Mexico to be excluded from these measures, just as the United Kingdom was,” the federal official emphasized.
He pointed out that the decision by Donald Trump , President of the United States, goes against the industries of both countries, since steel is mainly used in the automotive, construction, metalworking, and electronics industries , so these sectors will be affected.
Ebrard emphasized that he believes the 50% tariff will be difficult to sustain, and said it will have to be adjusted, as the economic impact is significant. He also maintained that “there is a plan for any scenario.”
He added that the new measure is unfair to Mexico. “It makes no sense to impose a tariff on a product you have a surplus in. Normally, it’s imposed when you have a deficit, not a surplus.”
Last February, Ebrard stated that the United States’ surplus with Mexico in the steel and aluminum trade would reach $6.897 billion in 2024, while the balance with other countries was negative.
On June 3, Trump signed an executive order to increase tariffs on steel and aluminum imported into the United States, increasing them from 25 percent to 50 percent.
The new tax will apply to goods imported for consumption determined by the date of crossing, or goods imported into free trade zones starting June 4.
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