US and Mexico Negotiating Deal to Reduce Trump’s Steel Tariffs

 

US and Mexico Negotiating Deal to Reduce Trump’s Steel Tariffs The United States and Mexico are in talks to reduce or eliminate President Donald Trump’s 50% tariffs on steel imports, according to industry and trade sources. The likely outcome involves a quota system, allowing Mexico to export a certain volume of steel duty-free or at a lower rate, with shipments above that threshold subject to the full tariff. Details such as the exact quota size and whether tariffs would be fully eliminated within the quota remain undecided. Bloomberg reports that the two countries are close to an agreement that would permit U.S. companies to import Mexican steel tariff-free as long as shipments stay within historical levels.

Mexico was the third-largest source of U.S. steel imports in 2024, after Canada and Brazil. Trump initially imposed 25% tariffs in 2018, with exemptions for Mexico and Canada, which were later revoked in April. Mexican Economy Minister Marcelo Ebrard criticized the tariffs, arguing they are unjustified given the trade surplus between the countries and warning they could harm jobs and supply chains. The final terms of the deal are still being negotiated, and officials have yet to comment publicly.

See also: US Court Allows Trump’s Tariffs to Remain in Effect During Appeal