The increase in prices due to the application of U.S. tariffs on steel and aluminum is already a reality. In Mexico, consumers will be affected by the rising costs of various products such as cars, bicycles, beer, razors, and cell phones that contain these materials. On Wednesday, March 12, 2025, a 25% tariff came into effect. This measure not only increases the cost of raw materials in the U.S., but also has global repercussions on products that contain metal parts.
The Mexican steel sector, which generates 683,000 direct and indirect jobs, has been impacted by this decision. In the last 10 years, investments totaling $14.1 billion have been captured in this industry. Per person, approximately 220.1 kilos of steel products are consumed annually in Mexico, while the global figure is 221.8 kilos per year.
Gabriela Siller Pagaza, director of Economic Analysis at Grupo Financiero BASE, mentioned that the effective tariff rate on steel and aluminum is 50%. This includes a 25% general tariff imposed on March 4 and another 25% specific tariff that took effect on March 12. The latter mainly affects steel and aluminum exports in Mexico that are outside of the USMCA.
Economics and Finance specialist from the Banking and Commercial School (EBC), Ramón Martínez, warned that Mexicans will soon feel the effects in their wallets, with increases of up to 60% in the prices of everyday household items in the country. This includes construction materials, vehicles, appliances, electronics, as well as foods like beans, dairy products, and cans of beer.
Martínez estimated that products containing steel and aluminum could see price increases of up to 10% for the end consumer and their families in the next three months. This increase is not proportional to the 25% tariff, as it only affects parts or components made of these materials, not the regular price of finished items.
The impact of the tariffs has multiple causes, including the increasing cost of steel and aluminum in the United States, the return of finished products to Mexico with higher production costs, and the speculation and inflation generated by the tariffs on the price of the dollar. All this affects the Mexican steel and aluminum industry, threatening exports, jobs, and the economy in general.
