Mexico could impose retaliatory tariffs on the US next week should negotiations over the US doubling steel and aluminum tariffs effective today fail, said President Claudia Scheinbaum.
Sheinbaum in her daily news conference said the 50pc tariffs are unfair, unsustainable, and not legal given existing trade agreements between the two countries. The countries have made headway on negotiations to amend current trade prior to the US increasing the tariffs from 25pc to 50pc effective today. Mexico was previously exempted from section 232 tariffs under the US–Mexico–Canada Agreement (USMCA).
"Our responsibility firstly is to protect Mexican workers and second to protect the industry," Sheinbaum said.
Sheinbaum meet today with Mexico steel and aluminum groups, Canacero and Canalum, to discuss how potential retaliatory measures will be implemented.
"It is not eye-for-eye," Sheinbaum said. "We are protecting our industry."
Mexico in 2018 imposed 7-25pc retaliatory tariffs on the US after the imposition of the original section 232 tariffs.
US president Donald Trump on 30 May announced the doubling of existing global section 232 steel and import tariffs effective today. The UK was the only country exempted from the increase, remaining at 25pc.
As a result of USMCA negotiations, Sheinbaum said Mexico has taken steps to reduce its own imports after US lawmakers in 2023 accused Mexico of passing through to the US steel from tariffed Asian countries.
