According to a report by Bloomberg on July 26, four people familiar with the matter revealed that the U.S. government is asking Mexico to follow the U.S.'s approach and impose tariffs on steel and aluminum products originating from regions outside North America, in order to jointly restrict Chinese steel and aluminum products from entering the North American market.
These individuals claim that the move is aimed at maintaining preferential treatment for steel produced in the United States, Mexico, and Canada in North American trade, while establishing unified external tariff barriers against countries outside North America such as China.
It is said that this is a “major request” made by US trade officials to Mexico, and Mexico is considering accepting this arrangement. Currently, the two sides are still discussing possible tariff rates and the specific products involved. An informed source said that the United States hopes to reach a framework agreement with Mexico by the end of this year.
Bloomberg pointed out that recently, the United States and Mexico have been conducting bilateral negotiations regarding the “US-Mexico-Canada Agreement”. On July 1st, the U.S. government refused to renew the trade agreement in its current form, instead opting for rolling negotiations aimed at tightening regional origin rules and restricting China’s role in North American supply chains.
Last week, U.S. Trade Representative Jaime Johnson Greer and Mexican Economic Minister Marcelo Ebrard held the third round of bilateral talks in Mexico City. The two sides discussed issues such as steel and aluminum, automobiles, economic security, labor, and agriculture.
The US and Mexican governments plan to meet again in Washington in September, and have stated that they need to prevent countries that do not belong to the agreement member countries but still enjoy trade benefits from 'free-riding'.
Some informed sources revealed that earlier this year, Mexico proposed a significant reduction in imports of steel from China as a measure to advance the negotiations.
Currently, the United States imposes more stringent trade restrictions on steel and aluminum products than Mexico. Under Section 232 of the Trade Expansion Act of 1962, the United States imposes a 50% tariff on basic steel and aluminum products from China and most other economies. Additionally, a 25% tariff is applied to steel and aluminum derivatives, with some machinery items facing lower tariffs.
In contrast, Mexico imposes metal import duties based on specific product categories. For steel products coming from countries that have not signed trade agreements with Mexico, the highest duty rate currently stands at 25%, and some products are also subject to anti-dumping duties.
Earlier this year, Mexico implemented new tariff measures on approximately 1,500 products from countries that have not signed trade agreements. This adjustment mainly affects imported goods from China, and is seen by the outside world as an attempt by Mexican President Enrique Peña Nieto’s government to make its own tariff system more in line with American policies.
US steel producers have previously asked the Trump administration to impose similar restrictions on Mexico and Canada, in line with US Section 232, including matching the tariffs imposed by the US, as well as expanding the products and countries affected.
American steel companies also require the introduction of so-called “melting and casting” rules. That is, only steel products that have undergone steel melting in North America, rather than just being rolled or processed in North America, can receive special trade benefits.
Furthermore, the US steel industry also put forth a series of more far-reaching demands, including increasing the proportion of American steel purchased by automobile manufacturers from their current 70% to 85%, expanding the rules for labor value to more steel-intensive products, and restricting investment from countries like China.
Regarding the new round of tariffs imposed by the United States, the Chinese Ministry of Foreign Affairs stated on the 24th that China's position on Sino-US economic and trade issues has always been consistent and clear. China opposes all forms of unilateral tariff measures; a tariff war or trade war does not serve the interests of either party.
Since 2025, Mexico has been reported to consider adopting similar measures as the United States, by imposing high tariffs on Chinese goods. The Chinese Ministry of Foreign Affairs responded by stating that, in principle, China always advocates for inclusive economic globalization. It opposes all forms of unilateralism, protectionism, and discriminatory exclusive measures. China firmly opposes setting restrictions on China under the coercion of others, under any pretext, as it will resolutely defend its own rights and interests based on the actual circumstances.
China stated that both China and Mexico are important members of the Global South. Mutual benefit and win-win outcomes are the essential characteristics of Sino-Mexican economic and trade cooperation. China attaches great importance to the development of Sino-Mexican relations. In the context of some countries imposing excessive tariffs, China and Mexico should strengthen communication and coordination. Together, they can maintain free trade and multilateralism, and jointly promote the recovery of the world economy and the development of global trade.
