Will Mexico Impose Tariffs on Chinese Steel? The U.S. Request

The United States has requested that Mexico adopt a tariff scheme similar to the one currently applied to steel and aluminum originating from China and other non-North American countries, as part of the negotiations to revise the

(USMCA). This proposal aims to create a common tariff barrier within the region to maintain preferential treatment for steel produced in Mexico, the United States, and Canada. While the Mexican government has agreed to analyze the request, the products that would be subject to new tariffs and the eventual percentages remain under discussion.

Currently, the United States imposes a 50% tariff on steel and aluminum imported from China, in addition to a 25% duty on various derivative products under Section 232. In contrast, Mexico maintains a different scheme, applying tariffs of up to 25% only to specific products from countries with which it does not have trade agreements.

The request comes as both governments begin the USMCA reviews. According to Bloomberg, Washington aims to reach a preliminary agreement before the end of the year, while simultaneously tightening rules of origin for the North American steel and automotive industries.

The report notes that Mexico has already strengthened its trade policy towards countries without trade agreements by imposing tariffs on approximately 1,500 products, a measure that primarily affected China. Furthermore, Mexican officials this year offered to significantly reduce purchases of Chinese steel.

Among the proposals championed by the United States is also the requirement that steel used in vehicle manufacturing be melted and cast in North America, in addition to raising the required regional steel content for automotive production from 70% to 85%.

The initiative has also drawn criticism from China. The outlet Global Times published that international trade specialists have described the request as a pressure tactic against Mexico. Li Yong, a member of the China Society of WTO Studies, stated that the strategy “violates the WTO’s principle of non-discrimination and undermines international trade rules.”

Meanwhile, Zhou Mi, a researcher at the Chinese Academy of International Trade and Economic Cooperation, warned that such a measure would increase the cost of raw materials for Mexico’s manufacturing industry and reduce the competitiveness of its exports.