Tariff Updates
Mexico
As of October 7, 2025, the United States has reinstated and increased Section 232 tariffs on Mexican iron and steel, eliminating previous exemptions. Initially set at 25% on February 10, 2025, the tariff was doubled to 50% effective June 4, 2025, by a presidential proclamation. These ad valorem tariffs are applied broadly to steel products and have been expanded to include 'derivative' articles. A new 'tariff stacking' procedure could also lead to multiple duties on the same product, impacting goods not considered 'originating' under the USMCA.
Existing Trade Agreements
The U.S. and Mexico have a significant trade relationship in the iron and steel industry, governed by the United States-Mexico-Canada Agreement (USMCA). In 2024, U.S. iron and steel imports from Mexico were valued at approximately $3.31 billion. The trade balance, however, favors the U.S.; in the first half of 2025, the U.S. exported $6.73 billion in steel to Mexico and imported $4.59 billion from Mexico. This resulted in a $2.15 billion trade surplus for the United States in this sector.
New Tariff Changes
The new tariff policy is a significant departure from the previous one, where Mexico was largely exempt from Section 232 steel tariffs under the USMCA. The current administration has used Section 232 of the Trade Expansion Act of 1962, citing national security concerns, to override these prior exemptions. The previous policy was designed to prevent the transshipment of steel from countries like China by requiring it to be 'melted and poured' in North America. The new policy applies a broad tariff on nearly all Mexican steel imports regardless of origin and the increase from 25% to 50% intensifies this protectionist stance.