The imposition of U.S. tariffs on steel and aluminum is generating concerns in Mexico, as there are fears that this measure could have significant economic consequences for the country. The Mexican Institute for Competitiveness (IMCO) has warned that the application of a 25% tariff on these materials, starting from March 12, could cause daily losses exceeding 1.6 billion pesos, in addition to putting Mexican companies at risk of bankruptcy.
According to IMCO, based on the executive order signed by President Donald Trump, the Mexican economy could suffer a blow of more than 29 billion dollars a year due to this measure. This implies a total of 590,506 million pesos in steel and aluminum exports, with an average decrease of 1,617.8 million pesos daily while the tariffs are in effect.
The potential impact of the tariffs on aluminum is estimated at 6.7 billion dollars in steel and iron product exports, along with a reduction in aluminum exports of 667 million dollars. These figures represent a serious detriment to the national industry.
In addition, the U.S. executive order imposing the tariffs also includes other products such as common metals, machinery, household appliances, and entertainment items. In total, it is estimated that the impact of this tariff policy could reach 29,233 million dollars, which would create serious problems for Mexican companies in the sector.
Gabriela Siller Pagaza, director of Economic Analysis at Grupo Financiero BASE, explained that the 25% tariffs on steel and aluminum are applicable to all countries, including Mexico. These tariffs add to the existing ones that came into effect on March 4, and that remain in force for Mexican exports that do not comply with the USMCA rules.
According to Siller, this could significantly affect Mexican exports, as even if the United States decided to exempt certain products that comply with the USMCA, a 50% tariff would still persist on the majority of steel and aluminum exports. This situation represents a significant challenge for Mexico in the trade sphere.
