The Secretary of Economy, Marcelo Ebrard, traveled for the third time to Washington to avoid the imposition of tariffs by the US government, now steel and aluminum, scheduled to enter into force on March 12.
This was announced this Monday in a brief message the Ministry of Economy, which explained that the Undersecretary of Foreign Trade, Luis Rosendo Gutiérrez, also attended to hold meetings with US officials.
The administration of President Donald Trump, which began on January 20, promoted this measure as part of its strategy to protect the American steel industry, which has generated concern in Mexico due to the impact it could have on the competitiveness of the sector.
Background and perspectives
The director of Economic and Financial Analysis of Grupo Base, Gabriela Siller, stressed that in the past, despite tariffs, Mexican steel and aluminum imports to the United States increased because companies sought alternatives to other affected suppliers.
“In Trump’s first mandate, the imports of steel and aluminum carried out by the US of Mexico increased despite the tariff, due to a replacement effect. Canada was the great loser with this tariff, ”he explained.
The imposition of rates on steel and aluminum is not a new issue in the commercial relationship between the two countries.
In 2018, also under the administration of Trump, EU imposed 25% tariffs on steel and 10% to aluminum for Mexico, Canada and the European Union.
Although these rates were removed in May 2019, their impact was reflected in the bilateral trade, the specialist recalled.
In addition, Siller indicated that, according to data from the US Census, during the 12 months that tariffs were in force (June 2018 to May 2019), México and EU aluminum imports grew 7.48%, reaching 8,357 million dollars.
This growth was largely due to a substitution effect, since imports from Canada fell 13.45% in the same period.
Lee: Sheinbaum insists that the US would not have reciprocal tariffs on Mexico
Entrepreneurs of the steel sector have expressed concern about the possibility that these new tariffs affect the supply chain in North America.
Although Mexico and the US maintain a strategic commercial relationship within the TMEC, the Sheinbaum government seeks to ensure that these tariffs do not hinder the production and export of essential metals for various industries, including automotive and construction.
With EFE information
Follow us on Google News to always keep you informed
