The government of Mexico, along with Canada and the European Union, vehemently rejected the executive order announced by U.S. President Donald Trump on Monday, which will implement 25% tariffs on steel and aluminum imports from their countries. At a morning press conference, Claudia Sheinbaum, the President of Mexico City, heard from Economy Secretary Marcelo Ebrard, who stated, "No se justifica esa tarifa" (This tariff is not justified) and emphasized, "Es injusto, de acuerdo con los propios consideran del presidente Trump, porque tenemos más importación de Estados Unidos que exportación" (It is unfair according to Trump's own reasoning, because we import more from the United States than we export).
These new tariffs are set to take effect starting March 12, 2023. Ebrard explained the measure as general and not only applicable to Mexico, insisting on the country's substantial imports of steel from the U.S. Currently, Mexico maintains significant trade ties with its northern neighbor, making the prospect of tariffs worrying. Sheinbaum elaborated, "Nos estamos preparando mucho, hay mucho trabajo coordinado entre Secretaría de Economía y Secretaría de Hacienda para poner todos los argumentos sobre la mesa" (We are preparing thoroughly, there is significant coordinated work between the Ministry of Economy and the Ministry of Finance to present all arguments) and emphasized the benefits of their existing trade agreements.
Calls for retaliation are growing, especially from the National Chamber of the Iron and Steel Industry (Canacero), which urged the Mexican government to impose reciprocal tariffs on U.S. steel products, should Mexico not be excluded from the newly announced measures. They highlighted potential ramifications, as the proposed tariffs could disrupt up to 75% of Mexico's steel exports—worth approximately $2.1 billion—threatening jobs and investments across the industry and adversely affecting the North American metalworking chain.
On the other hand, the National Chamber of Aluminum (Canalum) cautioned against retaliation with additional tariffs, arguing such moves would only raise prices on finished products and harm consumers on both sides of the border. Canalum expressed concern over the tariffs negatively impacting about $2.8 billion worth of exports, consisting of roughly 270,000 tons of secondary and processed steel. These materials support various sectors, including automotive, aeronautical, construction, electrical, and naval industries within the United States.
The impact of Trump's tariffs extends beyond Mexico. European Commission President Ursula von der Leyen stated confidently, "Los aranceles son impuestos. Malos para los negocios, peores para los consumidores" (Tariffs are taxes. Bad for business, worse for consumers), advocating for strong countermeasures from the EU against what they deem to be unjustified tariffs. Affirming this sentiment, Canadian Prime Minister Justin Trudeau declared his nation would "resist" the tariffs, asserting they are "totally unjustified" and promising to respond "firmly and clearly."
Such trade disputes highlight the fragility of international economic relations, with affected countries poised for coordinated discussions. Trade experts advocate for using this time wisely to engage with U.S. officials, aiming to prevent escalation. Analysts warn these tariffs could set off wider consequences, impacting more than just metal prices, but also threatening the competitive fabric of North America as nations look to combat the threat of excess steel capacity from China and other Asian markets.
Mexico’s government remains steadfast, emphasizing the need for dialogue and cooperation to navigate these choppy waters of international trade. With substantial investments and jobs at stake, the stakes are high for workers and businesses alike. The challenge now lies on how Mexico, Canada, and the EU will collectively respond to these tariffs, potentially ushering in unknown economic consequences on both sides of the border.
Given the significant potential repercussions, the next few weeks will be pivotal as affected nations make their cases heard on the global stage, advocating for equitable trade practices and reaffirming the importance of partnership over confrontation.