Mexican steel exports to the United States declined sharply in the first half of 2025, hit hard by U.S. tariffs that increased the cost of importing the alloy into the world’s largest economy.
Official U.S. data shows that the value of the steel and steel products Mexico sent to the U.S. between January and June was US $4.59 billion, an annual decline of 16.6%.
Mexico’s share of the U.S. market for steel imports also declined, falling to 12.3% in the first half of 2025 from 13.4% in the same period of last year. Despite the decline, Mexico remained the third-largest steel exporter to the U.S., behind Canada and China.
The United States implemented 25% tariffs on imports of steel and aluminum from countries around the world on March 12. The duty for most countries, including Mexico, was doubled to 50% on June 4.
In February, when signing a proclamation restoring section 232 (national security) tariffs on all steel and aluminum imports regardless of where they come from, U.S. President Donald Trump said that “our nation requires steel and aluminum to be made in America, not in foreign lands.”
The United States’ imports of steel declined in annual terms in the first half of 2025, indicating that Trump’s tariff has helped to reduce that country’s reliance on foreign steel.
Mexico close to striking a deal on US steel tariffs, Bloomberg reports
The Mexican government has been attempting to negotiate a deal with the Trump administration to eliminate or at least reduce the tariffs that currently apply to steel and aluminum exports. However, no agreement has been reached.
U.S. tariffs also currently apply to vehicles made in Mexico and goods not covered by the USMCA free trade pact.
Despite the U.S. protectionism, the value of Mexico’s exports to the United States increased 6.3% annually in the first half of the year to reach US $264.38 billion, according to U.S. Census Bureau data.
Mexico’s steel exports to US have declined in recent years
U.S. data compiled by the newspaper El Economista shows that the value of Mexico’s steel exports to the United States was US $7.1 billion in the first half of 2022, an increase of 58.8% compared to the same period of the previous year.
Mexican steel exports to the U.S. declined in the first six months of subsequent years, falling 15.3% to $6.01 billion in the first half of 2023, and an additional 8.3% to $5.51 billion in the first half of 2024.
The implementation of the U.S. tariffs this year caused the rate of decline to increase to 16.6%.
Mexico recorded deficit with US on steel trade
The Mexican government has argued that a tariff on Mexican steel is unfair and unjustified, given that Mexico runs a deficit with the United States on the trade of the metal.
Mexico imported U.S. steel and steel products worth $6.73 billion in the first six months of 2025, leaving it with a $2.14 billion deficit with its northern neighbor on the trade of the metal.
With reports from El Economista
