Mexico says crackdown on Asian steel shipments is paying off as US tariff talks advance
SPY•Mexico removed around 1,100 steel mills from its approved registry and cut steel imports from Vietnam by 80% in recent months, while imports of steel and aluminum from China, South Korea and India fell about 30%. Mexico is seeking relief from US tariffs on autos, steel and aluminum.
1. Tighter steel controls
Mexico has tightened traceability measures to prevent steel and other products from being rerouted through the country into the United States under North America's trade pact, Deputy Economy Minister Luis Rosendo Gutierrez said. Mexico removed around 1,100 mills, many in Asia, from its approved registry after finding they did not exist; steel imports from Vietnam fell 80% in recent months.
2. Tariff discussions
Mexico also reduced steel and aluminum imports from China, South Korea and India by about 30%, equivalent to roughly 13 billion pesos ($698.54 million), Gutierrez said. Mexico's priority is reducing the impact of US Section 232 tariffs on autos, steel and aluminum. About 80% of Mexican exports to the United States already enter tariff-free, he added, and Mexico hopes for positive news on its proposals in the coming weeks before year-end.
3. Trade concerns
Analysts argue that Mexico is not a hub for steel transshipment. A report by the Center for Strategic and International Studies said some goods may undergo significant processing in Mexico before being exported to the United States, rather than simply passing through the country.
