94Ha ViewpointThe United States and Mexico are close to a deal to remove the 50% tariffs imposed by the Trump administration on some Mexican steel imports, according to people familiar with the matter. The agreement would revisit the terms of a similar deal between the two countries during Trump’s first term. The negotiations were led by U.S. Commerce Secretary Howard Lutnick, who must approve the deal even though Trump was not directly involved.
The deal has not yet been finalized, but preliminary terms show that U.S. buyers will enjoy duty-free treatment as long as they keep Mexican steel imports within limits based on historical trade levels. The new limits are higher than similar agreements under Trump, but they are not fixed numbers and are set to prevent surges in imports.
The total amount of steel imported from Mexico by the United States last year was about 3.2 million tons, accounting for 12% of the total U.S. steel imports, according to the U.S. Department of Commerce. In 2019, the Trump administration reached an agreement with Mexico to prevent steel imports from exceeding the average level from 2015 to 2017.
Mexican Economy Minister Marcelo Ebrard said tariffs on Mexican steel are unreasonable because the United States exports more steel to Mexico than Mexico exports to the United States. He also mentioned that he met and shook hands with Lutnick in Washington last Friday, showing the positive interaction between the two sides in the negotiations.
Currently, Mexican President Claudia Sheinbaum is seeking to reach a settlement with Trump on border immigration and drug smuggling. Sheinbaum has confirmed that she will attend the upcoming G7 summit in Canada and may hold a bilateral meeting with Trump. Mexico’s foreign minister is also coordinating relevant meeting arrangements.
