The United States and Mexico are close to an agreement that would eliminate 50% tariffs that President Donald Trump imposed on Mexican steel imports to a certain volume, Bloomberg News reported, citing people familiar with the matter.
The terms of the agreement, which have not yet been completed, would allow US companies to import Mexican steel free of tariffs as long as total shipments are maintained below a level based on historical commercial volumes, the agency added.
The talks have been headed by the Secretary of Commerce, Howard Lutnick, and although Trump has not been directly involved, he must sign the agreement, according to sources asked for anonymity because they are private conversations.
The new export limit would be higher than the previous agreement, designed to “prevent sudden increases.”
The White House and President Claudia Sheinbaum’s office did not respond to requests for comments from Bloomberg.
The Secretary of Economy, Marcelo Ebrard, confirmed on Tuesday that the petition was already presented in Washington.
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“We are waiting for your answer, because on Friday we gave them the details of Mexico’s argument and we are right,” he told the press.
“So we are going to wait for your answer, which will probably be this week.”
Ebrard explained that the application is based on three points: the United States surplus in steel and aluminum with Mexico, the need to apply the same criteria as with the United Kingdom (which was exempt from the 50%tariff increase), and the impact that these barriers would have on employment and value chain.
“The United States has surplus with Mexico in steel and aluminum. They sell us more than we sell them. Then, putting a tariff where you have surplus is quite debatable, because the tariff objective is to reduce the deficit,” he explained.
“We do not ask to be the only excluded; we ask that the same criteria be applied,” he said.
Lee: Trump tariffs to Mexican steel and aluminum puts thousands of jobs and investments at risk, Coparmex alert
The negotiation occurs while Sheinbaum looks agreements with Trump on migration and drug trafficking.
With Reuters information
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