Mexico is seeking exemption from the recently announced tariffs on steel and aluminum by the United States. President Donald Trump has proposed increasing these tariffs to 50%, a move that has raised concerns among Mexican officials. Marcelo Ebrard, Mexico's Secretary of Economy, emphasized the country's hope for exemption during a press conference on Tuesday.

Ebrard is scheduled to meet with U.S. officials in Washington on Friday to present Mexico's case for exclusion from the tariff increase. He noted that the United Kingdom has successfully negotiated to maintain a 25% tariff on its steel and aluminum exports, setting a precedent that Mexico hopes to follow.

The tariffs on foreign steel and aluminum impact a wide range of American products, from soup cans to high-end appliances and automobiles. Economists warn that the new tariffs could lead to significant price increases for consumers and businesses alike. Ebrard stated, "This decision harms industries on both sides of the border, affecting key sectors with a very large economic impact. I see it as difficult to sustain. It is unfair, unsustainable, and we will present our arguments on Friday for Mexico to be excluded from this measure because it makes no sense."

In a related development, Mexican President Claudia Sheinbaum expressed her discontent with the tariff increase, labeling it as "unjust." She highlighted that Mexico imports more steel from the U.S. than it exports, resulting in a trade surplus for the U.S. of approximately $6.9 billion in steel and aluminum. Sheinbaum pointed out that Mexican exports of these materials account for only 2.1% of the country's total exports.

Sheinbaum also raised concerns about the legal basis for the tariff increase, citing the United States-Mexico-Canada Agreement (USMCA) that governs trade relations among the three countries. The tariff hike follows weeks of negotiations aimed at avoiding a 25% tariff imposed by Trump earlier this year. Despite this setback, Mexico has made progress in reversing tariffs on the automotive sector.

During her morning conference, Sheinbaum announced that Ebrard would meet with U.S. Commerce Secretary Howard Lutnick and other officials to discuss a potential agreement. She warned that if no resolution is reached, Mexico would consider measures to protect its jobs and industries. "This is not about revenge. No. It is about protecting our jobs and our companies," she stated.

The impact of the tariff increase is expected to be significant for the Mexican steel industry. According to estimates from the National Chamber of Iron and Steel Industry (Canacero), U.S. unilateral measures threaten 75% of Mexico's steel exports, valued at $2.1 billion, jeopardizing crucial jobs and investments.

Most of Mexico's steel production is concentrated in six states: Michoacán, Nuevo León, Guanajuato, Veracruz, San Luis Potosí, and Coahuila. In 2023, approximately 32% of Mexico's finished steel imports came from the United States.

In response to the tariffs, Alfredo Coutiño, director for Latin America at Moody's, suggested that Mexico might implement partial retaliatory measures targeting sensitive U.S. products, including steel, aluminum, agricultural, and livestock products. He noted that these tariffs could be directed at products and regions where Trump has significant political support, serving as a channel to convey concerns about the potential damage caused by protectionist policies.