INSUBCONTINENT EXCLUSIVE:
The Mexican steel industry is under pressure as the United States reinstates a 25% tariff on steel imports, effective March 12, 2025
This policy, originally introduced in 2018 and briefly exempted under trade agreements, now impacts all exporting nations, including
Mexico.The renewed tariffs have triggered a contraction of approximately 300,000 tons in Mexican steel exports to the U.S., nearly 10% of
have surged from $650 per metric ton to $1,000 due to the tariffs, a rise exceeding 50%.Guillermo Vogel, vice president of Tenaris and
former president of Canacero, warned that Mexican exporters risk accusations of dumping if they sell steel at lower prices to offset tariff
Such claims could lead to reciprocal tariffs from Mexico, further complicating trade relations.Mexico exported $5.58 billion worth of iron
in 2022, with these products playing a key role in construction, automotive manufacturing, oil extraction, and aerospace industries.However,
domestic demand for steel remains weak as major infrastructure projects like the Tren Maya and Olmeca Refinery wind down
remain uncertain.Steel Prices Soar as U.S
has widened significantly
While Mexico exported 3 million tons of steel to the U.S
exports to Mexico rose by 10%, reaching 4.5 million tons and creating a surplus of $4 billion in favor of the U.S.Mexican steelmakers are
expanding production capacity to meet nearshoring-driven demand but face oversupply risks if export opportunities shrink further
domestic demand while maintaining competitiveness in a shifting global market
As negotiations continue, Mexican manufacturers face tough decisions on adapting to these economic realities.
