Negotiations on Tariff Reductions: U.S. and Mexico's Steel Dilemma

The United States and Mexico are in talks to potentially reduce or eliminate the 50% steel tariffs President Donald Trump imposed on imports, insiders revealed.

A possible outcome could involve a quota system, permitting duty-free or reduced-rate entry for a specified volume of Mexican steel. Any excess would face the full tariff rate.

While negotiations continue, Bloomberg reported that both nations are close to a resolution, but terms remain unsettled. Mexico, a significant U.S. steel supplier with 3.52 million net tons in imports in 2024, argues that the tariffs are unjustified given the U.S. steel trade surplus with Mexico.

(With inputs from agencies.)