MEXICO CITY – Following failed negotiations to eliminate US steel tariffs, Mexican President Claudia Sheinbaum declared Wednesday that all government construction projects must utilize steel manufactured by domestic companies.
“The commitment we are making here is that the government’s purchases will be steel produced in Mexico,” Sheinbaum stated during her regular morning news briefing.
This directive represents Mexico’s initial major attempt to decrease its heavy economic reliance on the United States. While Trump’s global trade policies have prompted nations like Canada to diversify away from US dependence, Mexico had previously avoided actions that might upset its primary trading partner, which purchases 80% of Mexican exports.
The announcement comes during the ongoing review of the U.S.-Mexico-Canada Agreement. Trump’s comprehensive tariff strategy included imposing 50% duties on steel and aluminum imports last year.
Mexican government representatives have consistently argued these tariffs are unjustified, particularly since the United States maintains a trade surplus with Mexico in both steel and aluminum products.
More than half of Mexico’s automotive and steel industry exports are shipped to the world’s largest economy.
Mexican negotiators had been working toward an agreement to eliminate the tariffs. One potential arrangement would have allowed a predetermined amount of Mexican steel to enter the US without duties or at reduced rates, while imports exceeding that threshold would face the complete 50% tariff.
However, during a recent visit to Mexico, US Trade Representative Jamieson Greer informed the country’s automotive and steel sectors that they should not anticipate the USMCA review process will result in tariff removal for their industries, according to an exclusive Reuters report.
