New Tariffs Threaten Mexican Industry

The Mexican market is facing pressure from new tariffs that threaten supply chains and impact key industries. Specifically, tariffs on steel and PVC are causing significant concern. According to Mordor Intelligence, the global market share for stainless steel exceeds 34%. These tariffs extend beyond the plastics industry and risk destabilizing supply chains in construction, agribusiness, the automotive sector, and pharmaceuticals. If this financial burden continues, the Mexican market could see a shift from regional inputs to goods from third countries, primarily Asia. This would weaken North America's productive integration and the benefits of the USMCA. The company's strategy in Mexico prioritizes competitiveness in the low-emission steel market, facing regulatory pressure and the sustainability demands of global suppliers this year. David O'Donnell, president of the Mexican Association of Private Industrial Parks (AMPIP), presented Mexico's strategic proposal for adjusting regional supply chains at the North Capital Meridian Diplomacy Forum in Washington, D.C. He emphasized that industrial park infrastructure is fundamental for attracting investment and providing resilience to advanced manufacturing in North America. KitchenAid, operated in Latin America by Meyer and led by Felipe Gómez, projects tripling its sales volume in Mexico by the end of 2026, driven by the launch of a new cookware line and a strategic alliance with Whirlpool and Regalos Siglo XXI. The industry warns that the loss of competitiveness against Asian finished product imports would not only affect the profitability of local plants but also compromise the supply autonomy for strategic infrastructure projects in 2026. Ternium, led by Máximo Vedoya, is accelerating the construction of Phase 3 at its Industrial Center in Pesquería, Nuevo León, involving a $4 billion investment. The project includes a direct reduced iron (DRI) and electric arc furnace (EAF) with an annual capacity of 2.6 million tons. This infrastructure will allow for future green hydrogen integration, aligning with the global trend of decarbonization and energy efficiency in the steel industry. Simultaneously, the World Steel Association (worldsteel) recognized the company as the Sustainability Champion for the eighth consecutive year. This recognition validates the integration of environmental and safety standards into its processes after a comprehensive report on the product life cycle. This adjustment represents an increase of over 70% in production costs for national transformers, jeopardizing the viability of more than 300 companies and the stability of 35,000 direct jobs in the country. For the company, the Mexican market is strategic, representing 20-25% of its Latin American revenue, positioning it at key markets like Brazil and Colombia. In terms of the industry, kitchen utensils in the country reached a value of $305 million in 2025 and are projected to exceed $570 million by 2034, according to IMARC Group data. Gómez's strategy integrates a strong omnichannel component with the goal of 25% of revenue coming from e-commerce, while strengthening its presence in specialized retail points. KitchenAid aims to capitalize on this trend through the use of high-durability technologies like hard anodizing, and specific collections such as Stonewash, Agave, and Evergreen. The Mexican PVC transformation industry is facing an environment of operational uncertainty following the application of a preliminary countervailing quota on thermoplastic resin from the United States. The measure, published on March 24 in the Official Gazette of the Federation (DOF), establishes a charge of $631 per metric ton. The business model is based on a tripartite ecosystem where Meyer Cookware leads the cooking category, Whirlpool maintains command in appliances, and Regalos Siglo XXI operates the commercialization of kitchen utensils.