Posted on 28 Feb 2024
Mexico will impose tariffs on steel if its biggest trading partner, the United States, enacts such measures first, Mexican Economy Minister Raquel Buenrostro said at a news conference yesterday.
US calls to impose tariffs on steel imports from Mexico have been politically motivated and are not good for trade, Buenrostro said.
The Mexican minister met virtually earlier this month with US Trade Representative Katherine Tai, who during the call asked Mexico to address an “ongoing surge” in Mexican steel and aluminum exports to the United States and said tariffs could be reinstated.
Mexico’s steel chamber in a recent statement said steel exports to the US have not seen major variations since 2020 and vowed cooperation between the neighbouring nations to avoid tariffs.
The United States lifted tariffs on Mexican steel in 2019, warning they could be reinstated to protect the US industry if shipments from Mexico surge beyond a certain level.
The United States has also said more transparency is needed regarding the origins of the steel and aluminum products Mexico is exporting.
“Imposing tariffs on steel is not convenient for either the United States or Mexico, because if there were tariffs, they would be impacted the most, given their larger presence in the market,” Buenrostro said.
Mexico’s share in the US steel market stood at around 2.5 per cent last year, while the US presence in the Mexican market was about 14 per cent, she noted.
Mexico in recent months has used tariffs to target steel imports from China, which has been accused of selling surplus steel abroad at below-market prices, a practice known as dumping.
Latin America’s second largest economy is also working to tighten protocols to improve the ability to trace steel in order to avoid smuggling, according to the minister.
Buenrostro said her team is analysing imposing tariffs on other goods, adding those potential measures will be revealed next week.
Source:Malay Mail
