Mexican President Claudia Sheinbaum announced an agreement with the national steel industry with the aim of strengthening steel production in the country and reducing dependence on imports.

The agreement, described as “historic”, is part of the federal government’s strategy to bolster a sector considered key to production chains, particularly in industries such as automotive and construction; as part of the Mexico Plan.

The agreement includes measures to incentivize national production and promote domestic consumption of steel , in line with an industrial policy that seeks to prioritize national content in different sectors; all this under three main pillars: public procurement , infrastructure financing and commitments to the construction sector .

This announcement comes in a complex context for the Mexican steel industry, marked by trade tensions with the United States, with tariffs of up to 50 percent.

It’s worth noting that Mexico is a major exporter of steel products, with the United States as its primary destination. According to the National Chamber of the Iron and Steel Industry (Canacero) , between 70% and 80% of Mexican steel exports go to the U.S. market, reflecting the high level of production integration in North America.

Furthermore, the industry faces capacity utilization below 60% , pressured by both trade measures and international competition, especially from Asian countries.

Sheinbaum’s announcement comes in parallel with new measures to prioritize the use of domestic steel in public projects, a strategy that seeks to strengthen domestic demand in the face of an adverse international environment.

The agreement with the steel industry also comes in the lead-up to the review of the United States-Mexico-Canada Agreement (USMCA) , where steel and aluminum are emerging as key issues on the bilateral agenda, especially regarding tariffs and rules of origin.

For his part,  Marcelo Ebrard, head of the Ministry of Economy , underlined the strategic importance of the steel industry for Mexico , highlighting its role in productive autonomy, employment, and the security of industrial chains.

“ It is an extraordinarily important industry for autonomy, for, I would say, even the security of our production chain ,” he stated.

Ebrard emphasized that the national steel industry is a pillar for multiple industries, providing essential inputs for various production chains in the country.

“ The Mexican steel industry is responsible for producing a huge number of inputs for almost all of Mexico’s industrial chains. That’s why we have to take great care of it; besides being very important for employment, it generates value ,” he said.

In numbers, the Mexican steel industry produces around 18 to 20 million tons of steel per year under normal conditions , according to Canacero, and also contributes about 2% of the manufacturing GDP and generates more than 600,000 direct and indirect jobs.

Ebrard also highlighted the dynamism of investments in the sector, referring to his recent visit to a project in Pesquería, Nuevo León.

“ It’s practically a city that’s being built to produce highly sophisticated steel in Mexico and stop importing it, especially for the automotive industry ,” he emphasized.

He added that “ we need to organize ourselves to reduce imports from other parts of the world and so that the industry, including ourselves, can reciprocate the effort it is making, the investment effort, to expand its plants, and help them to get through these months and coming years in the best possible conditions .”

The federal official stated that, while price remains a relevant factor, the origin of the products will be a determining factor in decision-making.

“ It’s not just the price; where it’s made matters a lot. Sometimes we don’t make everything and we have to import some things, but we have to make the effort to, first, see what we can do here in our country ,” he said

He also reiterated that the central objective of the agreement is to support the national steel industry and strengthen domestic production.

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