Mexican steel manufacturers are experiencing uncertainty and a shift in their trade policy regarding the U.S. market. Although Mexico and Canada are exempt from the tariffs imposed by the Trump administration, the threats to re-impose these taxes have created concern within the industry.
According to data from the U.S. Department of Commerce, Canada is the leading supplier of steel imports to the United States, followed by Mexico. Stelco, a Canadian company, has informed its U.S. consumers about pausing sales quotes. Stelco's parent company, Cleveland-Cliffs, is one of the largest steel producers in the U.S., and its CEO, Lourenco Goncalves, has stated that President Trump will make the decisions he deems necessary.
In response to Trump's threats, steel manufacturers in Mexico and Canada have begun to reject new orders from the United States. Mexican suppliers have stopped accepting steel orders this week, anticipating possible actions by the U.S. government. Jeremy Flack, CEO of Flack Global Metals, mentioned that the industry has gone through various stages of concern due to the uncertainty generated by these threats.
The United States is one of the largest steel consumers globally, with approximately 27% of its total demand being met by imports. In light of this situation, manufacturers in Mexico and Canada are evaluating their actions and business strategies amid a landscape marked by imbalance and uncertainty.
