- Mexico prepares retaliatory measures as U.S. steel tariff deadline looms.
- $8.7 billion domestic steel investment plan proceeds regardless of trade tensions.
- Bilateral talks this week could determine escalation or resolution path.
Deadline Looms for U.S.-Mexico Steel Talks
President Claudia Sheinbaum confirmed Mexico will enact countermeasures by next week unless negotiators reach a deal with the U.S. on steel tariffs. The ultimatum comes as the Trump administration prepares to hike tariffs on Mexican steel and aluminum to 50% starting June 5 - doubling current rates imposed under Section 232 national security provisions.
"We will defend our industry and workers," Sheinbaum stated, noting the U.S. maintains a trade surplus in steel with Mexico. Officials from both nations are scheduled to meet later this week, though sources close to the talks describe positions as "far apart" on key issues.
Steel Industry Forges Ahead
The National Steel and Iron Industry Chamber (Canacero) reaffirmed plans to invest $8.7 billion over five years to expand production capacity. "These projects will proceed with or without tariffs," said Canacero president Víctor Martínez Cairo, citing commitments under Sheinbaum's industrial development plan. The investment aims to reduce import dependence while positioning Mexican steel for alternative export markets.
Industry analysts note the proposed countermeasures could target sensitive U.S. agricultural exports or manufacturing supply chains. Mexico previously retaliated against Trump-era steel tariffs by imposing duties on American pork, cheese, and bourbon - a playbook that may inform the current response.