The United States has imposed 25% tariffs on all steel and aluminum imports, following an executive order signed by President Donald Trump on February 10. While the U.S. delayed tariffs on other Mexican goods until April 2, it has moved forward with duties on Mexican steel and aluminum, as well as hundreds of products made from those metals, such as nuts and bolts, bulldozer blades, and soda cans.
Mexico, along with other nations, sought an exemption but was unsuccessful. White House spokesperson Kush Desai stated that President Trump leveraged the strength of the U.S. economy to secure a victory for American manufacturers, emphasizing that no exceptions or exemptions would be granted.
On Wednesday, Mexican President Claudia Sheinbaum responded by stating that her administration would wait until April 2 before deciding on retaliatory measures. She remains confident that most Mexican goods will not be subjected to additional U.S. tariffs, as Mexico does not impose duties on most U.S. imports under the USMCA trade pact.
Mexico’s Economy Minister Marcelo Ebrard met with U.S. Commerce Secretary Howard Lutnick in Washington to continue discussions on the matter. Sheinbaum indicated that Mexico would assess its position after the U.S. finalizes its trade decisions on April 2.
Unlike Mexico, Canada and the European Union responded swiftly, imposing retaliatory tariffs on U.S. goods. The last time the Trump administration enacted similar tariffs in 2018, Mexico responded with duties on U.S. pork, apples, steel, bourbon, and other products, particularly targeting industries in states that supported Trump in the 2024 election.
The Mexican government has argued that the tariffs are unfair, given that Mexico imports more steel and aluminum from the U.S. than it exports. Canacero, Mexico’s steel industry association, expressed strong opposition, warning that the tariffs threaten 75% of Mexico’s steel exports and could jeopardize jobs and investment. The group called for reciprocal tariffs on U.S. steel products if Mexico fails to secure an exemption.
Mexico is the second-largest supplier of steel, aluminum, and related products to the United States, with exports valued at $34.83 billion in 2024. However, only a small fraction of that total—$3.5 billion in steel and $397 million in aluminum—consists of raw materials. The vast majority comes from finished products that incorporate those metals.
The Mexican Institute for Competitiveness (IMCO) estimated that the tariffs would affect 4.7% of Mexico’s total exports. Had they been in place in 2024, the tariffs would have impacted $22.53 billion worth of Mexican goods, including:
- Auto body parts: $7.71 billion
- Air conditioner parts: $2.88 billion
- Vehicle engine parts: $1.45 billion
- Vehicle air conditioner parts: $1.14 billion
- Vehicle suspension parts: $817.6 million
- Telephone parts: $814.5 million
- Metal furniture: $727.5 million
- Machines and mechanical devices: $572.7 million
- Fridge and freezer parts: $428.9 million
- Electrical devices: $407 million
Mexico’s auto industry, a crucial export sector, is expected to be hit particularly hard. Additionally, rising costs for materials will likely drive up prices on consumer goods in the U.S., including cars, household appliances, and construction materials. The New York Times warned that higher input costs could hurt American manufacturers, potentially undermining Trump’s efforts to bolster domestic production.
While Mexico waits for April 2 to determine its response, analysts warn that prolonged trade tensions could disrupt North American supply chains and weaken regional competitiveness. Whether the U.S. and Mexico can reach a resolution remains to be seen.