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Report: Mexico Will Retaliate If 25% Tariffs on Steel Return

Mexican Economy Secretary Raquel Buenrostro said in Mexico this week that if the U.S. reimposes 25% tariffs on Mexican steel exports over alleged surges, Mexico will retaliate. Mexico's steel exports are only 2.5% of the U.S. market, and U.S. steel exports are 14% of the Mexican market, so the U.S. has more to lose if Section 232 tariffs on Mexican steel return, she said.

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Calls to impose tariffs because of supposed import surges from Mexico have been politically motivated, Buenrostro said, according to a Feb. 27 Reuters report. U.S. Trade Representative Katherine Tai, after a call with Buenrostro, released a summary of their conversation that said Tai reminded Buenrostro that tariffs could return if the U.S. is not satisfied about how Mexico reports its imports of steel (see 2402230080).

On Feb. 27, the Economy Ministry issued a press release that noted that steel exports from Mexico fell by 28% last year, and steel imports from the U.S. into Mexico grew by 10%.

Mexico said it will update its tariff classification to match those in the U.S. for steel and aluminum products, and will impose 25% tariffs on 205 steel products from countries that it does not have free trade agreements with.

It will also publish information about the country of melting and casting in its import data, starting the first week of March, and will publish information online about steel and aluminum trade in Mexico.

"These measures seek to strengthen the commercial relationship in the steel and aluminum sectors between Mexico and the United States, highlighting the joint commitment to promote a competitive and transparent market in North America," an unofficial translation of the press release said.