U.S. urges Mexico to adopt tariffs on Chinese steel and aluminum to align with North American trade barriers

The United States has formally requested that Mexico impose Section 232-style tariffs on steel and aluminum imports originating outside North America, according to four individuals with direct knowledge of the ongoing USMCA trade review talks. The proposal is designed to create a unified external trade barrier against China while maintaining preferential treatment for steel produced within the U.S., Mexico, and Canada. The push comes as part of broader negotiations to update the USMCA trade agreement, with both countries planning further discussions in Washington in September. The U.S. has not renewed the existing USMCA framework as of July 1, opting instead for rolling negotiations aimed at tightening regional rules of origin and curbing China’s influence in North American supply chains. During the third bilateral round of talks held in Mexico City last week, U.S. Trade Representative Jamieson Greer and Mexican Economy Minister Marcelo Ebrard addressed steel and aluminum tariffs, automotive trade, economic security, labor standards, and agriculture. A fourth round is scheduled for September in Washington. The U.S. currently enforces a 50% Section 232 tariff on core steel and aluminum imports from China and most other economies, alongside a 25% tariff on derivative products and lower rates on selected machinery. Mexico, by contrast, applies tariffs on a product-by-product basis, with rates as high as 25% on steel imports from countries without trade agreements, in addition to specific anti-dumping duties. Earlier this year, Mexico implemented new tariffs on approximately 1,500 products from non-trade-deal countries—primarily targeting Chinese imports—following congressional approval. This move was seen as an attempt by President Claudia Sheinbaum’s administration to better align its trade policy with U.S. practices. American steel producers have pushed the Trump administration to press Mexico and Canada to adopt equivalent measures to the U.S. Section 232 tariffs, including matching tariff levels, product coverage, and country scope. Industry groups have also called for a “melted and poured” rule requiring steel to be smelted and cast in North America—not just rolled or finished there—to qualify for preferential treatment. Additional demands include raising the North American steel content requirement for automakers from 70% to 85%, extending labor-value content rules to more steel-intensive goods, and restricting investment from non-market economies such as China.