Mexico is on the verge of reaching a partial relief agreement with the United States concerning the 50% steel tariffs through a proposed quota system, as reported by Bloomberg.
The emerging framework plans to set a quota based on Mexico’s 2015-2017 export volumes, which are approximately 2.79 million metric tonnes annually. Steel exports within this limit would not incur the full 50% tariff but would still face a 10% duty, whereas exports exceeding the quota would bear the complete 50% tariff.
This potential deal would encompass about 88% of Mexico’s steel exports to the US, calculated from last year’s total exports of 3.19 million metric tonnes.
The United States had implemented an initial 25% tariff on all steel and aluminum imports in March, which was subsequently increased to 50%. Mexico, which ranks as the third-largest steel exporter to the US, has persistently contended that these tariffs lack justification, given that Mexico imports more steel and aluminum from the US than it exports.
Mexican Economy Minister Marcelo Ebrard has undertaken multiple trips to Washington to negotiate with US officials, including Commerce Secretary Howard Lutnick, to seek exemptions or reductions to these tariffs.
President Claudia Sheinbaum has criticized the tariffs as “unjust” and has raised questions about their legal basis under the USMCA trade agreement. She recently proposed a separate “general agreement” concerning security, migration, and trade during a discussion with US President Donald Trump.
The Bloomberg report did not address any negotiations related to the 50% aluminum tariff.
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