US and Mexico nearing agreement to remove President Trump's 50% tariffs on steel imports up to a certain volume.

US and Mexico nearing agreement to remove President Trump's 50% tariffs on steel imports up to a certain volume.

In a significant development, the United States and Mexico are nearing an agreement to remove President Trump's 50% tariffs on steel imports up to a certain volume. The proposed agreement aims to address the economic strain caused by the tariffs, which have been in effect since June 4, 2025. This move is part of broader efforts to stabilize trade relations between the two countries.

Mexico, the world's second-largest exporter of steel to the United States, has been vocal about the negative impact of the tariffs. President Claudia Sheinbaum described the 50% tariff as "unjust" and "unsustainable," highlighting the adverse effects on Mexican steel exports. Economy Minister Marcelo Ebrard has been working to secure an exclusion from the tariffs, which would allow Mexican steel to enter the U.S. market without the 50% duty [2].

The proposed agreement comes as the U.S. government seeks to adjust its trade policies. In March 2018, the Trump administration initially imposed a 25% tariff on steel and aluminum imports, citing national security concerns. This tariff was later doubled to 50% on June 4, 2025, as part of a broader strategy to protect U.S. steel and aluminum industries [1].

The potential agreement to lift the tariffs is a positive sign for the Mexican steel industry and could boost trade between the two countries. Mexican steel manufacturers have been grappling with the higher tariffs, which have increased the cost of their products in the U.S. market. The proposed agreement could help alleviate these costs and stimulate economic growth.

The negotiations are ongoing, and a final agreement is expected to be announced in the coming weeks. This development is closely watched by investors and financial professionals, who are monitoring the potential impact on global steel markets and trade relations between the U.S. and Mexico.

References:
[1] https://www.bdo.com/insights/tax/section-232-tariffs-on-steel-and-aluminum-doubled-and-related-developments
[2] https://mexiconewsdaily.com/business/mexico-sheinbaum-trump-steel-and-aluminum-tariff/