Trump Administration Reportedly Near Deal to Exempt Mexican Steel Imports
Senior US and Mexican officials are nearing an agreement that would exempt a specified quantity of Mexican steel imports from President Trump’s 50 percent tariff, sources familiar with the matter told media outlets. The proposed arrangement would revive a similar framework established during Trump’s first term in office.
While Trump is not directly involved in the current negotiations, any final agreement requires his approval. Commerce Secretary Howard Lutnick is leading the talks on the American side, according to insiders. The deal remains unofficial as discussions continue.
Tariff Relief Tied to Import Volume Caps
Under the emerging terms, Mexican steel shipments would qualify for tariff exemptions if they remain below a calculated threshold based on historical trade volumes. This volume limit would exceed the ceiling established in the 2019 agreement between the two nations during Trump’s previous administration.
Notably, these “caps” function as flexible thresholds rather than fixed quotas, designed primarily to prevent sudden import surges rather than strictly limit trade volumes. US Commerce Department statistics show Mexico exported approximately 3.2 million tons of steel to the United States last year, accounting for 12 percent of total American steel imports.
The 2019 agreement between the nations referenced average import levels from 2015-2017 as its reference point for limiting steel shipments.
Mexican Officials Push for Tariff Removal
Mexican Economy Minister Marcelo Ebrard stated Tuesday that he presented arguments against the steel tariffs during meetings with American officials last week, emphasizing that US steel exports to Mexico actually exceed the opposite trade flow. He shared a photograph of his recent handshake with Lutnick in Washington as evidence of ongoing discussions.
“Our position is correct, and we’re awaiting their response – likely this week,” Ebrard told reporters regarding the pending decision.
Broader Diplomatic Context
These negotiations occur as Mexican President Claudia Sheinbaum seeks to address multiple points of tension with the Trump administration, particularly regarding border migration and drug trafficking. Trump has explicitly demanded Mexico take stronger measures to curb these issues.
Sheinbaum confirmed her attendance at the upcoming G7 summit in Canada, noting the possibility of a bilateral meeting with Trump during the event. Immigration policy is expected to feature prominently in potential discussions between the leaders.
The Mexican president’s diplomatic agenda also includes a scheduled bilateral meeting with Canadian Prime Minister Justin Trudeau, with Foreign Minister Marcelo Ebrard coordinating the various engagement details.
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