Mexico Fails to Escape US Tariffs on Steel and Aluminum
México No Logra Exención de Aranceles Estadounidenses al Acero y Aluminio
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México failed in its attempt to be excluded from the 25% tariff on U.S. imports of steel, aluminum, and derivative products from both metals originating worldwide.
These tariffs took effect on March 12,Washington,D.C. time, complying with a series of executive orders from President Donald Trump.
Negociaciones Fallidas en Washington
To avoid the referred tariffs, the Secretary of Economy, Marcelo Ebrard, held negotiations in Washington with his U.S. counterparts, without success, at least regarding its entry into force.
In the last hours, Trump maintained a strong friction with Canada; the White House ruled out the exception to Australia, and the results of ebrard’s negotiations were awaited without response until the end.
When in his first term Trump imposed tariffs of 10% on U.S. imports of Aluminum and 25% on those of steel,only three countries managed to be excluded,without quotas or expressly temporarily: Mexico,Canada and Australia.
The White House spokesman, Kush Desai, confirmed in a statement that the tariffs took effect from midnight on Wednesday, without exemptions for any U.S. trading partner.
Impacto Económico de los Aranceles
The measure had an inflationary impact on a wide variety of products, from cars and appliances, to pipes and structures for construction, in the case of steel; and cans, doors and windows, as well as solar panels and almost all types of vehicles, in the case of aluminum.
Based on what has happened in similar situations before, Mexico’s response was announced on Wednesday by President Claudia Sheinbaum at the conference in the morning at the National Palace.
Considering the metals and their derivatives covered and the data of U.S. imports of 2024, China had the greatest tariff impact, with a potentially affected trade of 38,514 million dollars, followed by Mexico (34,830 million) and Canada (34,144 million).
The figures for Mexican exports to the U.S. market are broken down as follows: steel (3,499.9 million dollars), steel derivatives (8,042.8 million),aluminum (396.9 million) and aluminum derivatives (22,890.3 million).
In fact, Mexico was the country that exported the most aluminum derivatives to the United States in 2024, taking into account the products covered in Trump’s order.
Though, that potential impact would be less to some extent by a clause included in Trump’s proclamations.According to Executive Orders 10895 and 10896 of February 10, 2025, for derivative products, the Section 232 tariffs apply only to the steel or aluminum content of the derivative product and do not apply to derivative products processed in other countries using steel or aluminum that was “melted and poured” (steel) or “melted and molded” (aluminum) in the United States.
One more clarification: the lists of steel and aluminum derivative products contain some duplications (for a total of approximately 6,500 million dollars in imports in 2024).
Antecedentes de la Sección 232
Section 232 of the Trade Expansion act of 1962 authorizes the President to impose trade restrictions,such as tariffs or quotas,if the Secretary of Commerce determines,after an examination,that imports of a good “threaten to impair” the national security of the united States.
In 2018, President Trump proclaimed a 25% tariff on steel and a 10% tariff on aluminum imports under Section 232.
During the Trump and Biden administrations, the United States negotiated exemptions for some U.S. trading partners and granted specific exclusions for each entity, as well as Approved general Exclusions (GAE) applicable to any importer.
On February 10,2025,President Trump made changes to the Section 232 steel and aluminum tariffs,including increasing aluminum tariffs from 10 to 25% effective March 12,2025,eliminating all country exemptions for both steel and aluminum effective March 12,2025,and expanding the scope of products covered by the tariffs.
Trump also ordered the Secretary of Commerce to terminate all existing GAEs effective March 12, 2025, with other product exclusions to “remain in effect until their expiration date or until the volume of the excluded product is imported, whichever occurs first.”
Reacción al Proteccionismo Comercial
Minutes before the new tariffs took effect, Undersecretary of Foreign trade Luis Rosendo Gutiérrez published and shortly after deleted a post on the social network X in which he opined that the United States returned to “trade protectionism” for national security reasons.
Gutiérrez participated, together with the Secretary of Economy, Marcelo Ebrard, in the face-to-face negotiations in Washington to try to prevent the 25% tariff on U.S. imports of steel, aluminum and derivatives of both metals originating from all over the world from being applied to Mexico.
“The trips to Washington DC in recent weeks make it clear to me the return of trade protectionism. This is how it was born, and with tariffs that reached up to 50%, it financed the public budget until the beginning of the 20th century,” Gutiérrez wrote in a message sent via Twitter, which he later deleted from his account.
in that same message, the official argued this: “It is very important to understand that the imposition of tariffs is not an issue against Mexico, but an instrument used within a new global commercial design where the most relevant variable is not price, nor competitiveness, but economic security.That changes the whole model.”
He concluded with this local reference: “Without a doubt, what Mexico has achieved in the last 30 years in commercial matters, and especially in the last 6 years, not only allow our country to face this new undoubtedly complex challenge, but even emerge strengthened within the beginnings of what is already perceived as a new paradigm. @Claudiashein @m_ebrard”.
Gráfico EE
Okay, here’s a Q&A-style article based on the provided text, aiming for a professional, evergreen tone, focusing on clarity, and addressing key questions related to the US tariffs on Mexican steel and aluminum.
Q&A: Understanding U.S. Tariffs on Mexican Steel and Aluminum (2025)
Q: What new tariffs have been imposed on Mexican steel and aluminum exports to the U.S.?
A: As of March 12, 2025, the United States has imposed a 25% tariff on U.S. imports of steel, aluminum, and derivative products originating worldwide, including those from Mexico. this reverses previous exemptions that Mexico had secured. this action complies with executive orders from President Donald Trump.
Q: Why did Mexico fail to secure an exemption from these tariffs?
A: Despite negotiations led by Mexico’s Secretary of Economy, Marcelo Ebrard, in Washington D.C., an exemption was not granted. Other allies, such as Canada and Australia, also had their exemptions revoked.A statement by White House spokesman Kush Desai confirmed that the tariffs took effect without exemptions for any U.S. trading partner.
Q: What is Section 232 and how does it relate to these tariffs?
A: Section 232 of the Trade Expansion Act of 1962 authorizes the U.S. president to impose trade restrictions, such as tariffs or quotas, if the Secretary of Commerce determines that imports of a particular good “threaten to impair” U.S. national security. These tariffs on steel and aluminum where implemented under this justification. Trump initially proclaimed a 25% tariff on steel and a 10% tariff on aluminum imports under Section 232 in 2018.
Q: What is the economic impact of these tariffs?
A: The tariffs are expected to have an inflationary impact on a wide range of products, including:
Steel: Cars, appliances, pipes, and construction materials.
Aluminum: Cans, doors, windows, solar panels, and most types of vehicles.
Based on 2024 data, mexico is one of the countries that will be most affected, with a potentially affected trade of $34.83 billion, following China ($38.514 billion) and Canada ($34.144 billion).
Q: How much steel and aluminum does Mexico export to the U.S.?
A: In 2024, Mexican exports to the U.S. market in these categories were:
Steel: $3,499.9 million
Steel derivatives: $8,042.8 million
Aluminum: $396.9 million
Aluminum derivatives: $22,890.3 million
Notably, Mexico was the largest exporter of aluminum derivatives to the United States in 2024, considering the products covered by Trump’s order.
Q: Are ther any exceptions or qualifications to these tariffs on derivative products?
A: Yes, there’s a clause in Executive Orders 10895 and 10896 (February 10, 2025) that offers a partial exception. The Section 232 tariffs apply only to the steel or aluminum content of derivative products AND do not apply to derivative products processed in other countries using steel or aluminum that was “melted and poured” (steel) or “melted and molded” (aluminum) in the United States.
Q: What was the initial reaction in Mexico to these tariffs?
A: Undersecretary of Foreign Trade, Luis Rosendo Gutiérrez, initially posted on social media (though later deleted) that the U.S.was returning to ”trade protectionism” for national security reasons. He suggested that the imposition of tariffs was part of a new global commercial design where economic security, not just price or competitiveness, is the most crucial variable. president Claudia Sheinbaum announced Mexico’s response to the tariffs at a news conference.
Q: How were existing exemptions and exclusions handled under the new tariffs?
A: President Trump ordered the Secretary of Commerce to terminate all existing General Approved Exclusions (GAEs) effective March 12, 2025. Other product exclusions will remain in effect until their expiration date or until the volume of the excluded product is imported, whichever occurs first.
Q: What is Mexico’s likely response to these tariffs?
A: While the specific details of Mexico’s response are not detailed in the article, the article does state that President Claudia Sheinbaum was to announce what Mexico’s response would be.