In 2024, Mexico will have a steel trade deficit with the United States of 2.3 million tons
Mexico needs coordinated action to ensure a balanced steel market. This will allow it to maintain its position as an industrial leader in Latin America. This opinion was expressed at a meeting of the Caintra business association by Maximo Vedoya, CEO of the Ternium steel company.
According to him, Mexico is facing problems in the steel industry due to the impact of trade tensions with the United States and the possible consequences of its tariff policy.
Vedoya noted that recent suggestions by the U.S. Steel Manufacturers Association (SMA) that unfair trade practices may be increasing due to Mexican steel exports to the United States are incorrect. He considers the proposal to impose tariffs of 25% to be an irrational measure that will harm the industries of both countries.
As Ternium’s CEO explained, by the end of 2024, Mexico will have a steel trade deficit with the United States of almost 2.3 million tons.
“Our exports will reach 2.1 million tons, while imports from the United States will total 4.4 million tons. This imbalance clearly reflects the expansion of trade with the United States in recent years,” he said.
Mexican authorities have warned that if the US imposes tariffs, the country will have no choice but to retaliate. These actions could lead to an increase in production costs, which would affect the competitiveness of key sectors in the region, such as the auto industry and construction.
Vedoya believes that the upcoming renegotiation of the US-Mexico-Canada Free Trade Agreement (USMCA) in 2025 will provide an opportunity to address trade differences and address the concerns of both sides.
As GMK Center reported earlier, the Canadian Steel Producers Association (CSPA) has called for urgent action and dialogue between Ottawa and the new team of the US President-elect. The appeal is related to Trump’s promise to impose a 25 percent duty on all goods imported into the country from Canada and Mexico and an additional 10 percent duty on goods from China.
Catherine Cobden, president and CEO of the CSPA, notes that the new trade restrictions will harm the interests of Canada and the United States, as steel trade between the two countries is worth about $20 billion a year.
