Negotiations on Steel Tariffs Between the US and Mexico Approach a Breakthrough

A recent publication by Bloomberg indicates that the U.S. adn Mexico are nearing an agreement that could eliminate President Trump’s hefty tariffs on steel imports up to a specified volume. This proposal mirrors a previous arrangement made during his initial term in office.

While Trump is not directly participating in these discussions, he will have the final say on any deal reached. Commerce Secretary Howard Lutnick is leading the talks, as reported by sources who prefer to remain anonymous due to the confidential nature of the negotiations.

The proposed deal has yet to be finalized but suggests that U.S.companies could import Mexican steel without tariffs if they keep their total shipments within limits based on past trade volumes. Interestingly, this new threshold would be higher than what was set in earlier agreements during Trump’s first term—those were more about preventing sudden spikes rather than establishing fixed quotas.

The White House has not provided immediate comments regarding this development, nor has Mexican President Claudia Sheinbaum’s office responded.

Concluimos muy cordial reunión de trabajo con ⁦⁦⁦⁦@howardlutnick⁩
secretario de Comercio de los Estados Unidos . Avanzamos hacia soluciones para nuestras dos grandes naciones !! pic.twitter.com/X8JuTwOwQ0 — Marcelo Ebrard C.(@m_ebrard) June 6, 2025 p >

“We’re awaiting their feedback as we presented our case last week and believe we’re justified,” Ebrard told reporters recently. “We expect a response soon.” p >

Last week saw Trump announce plans to double steel duties up to 50% after approving Nippon Steel Corp.’s acquisition of United states Steel Corp., claiming it would bolster domestic industry and national security interests. While local steel producers support this move, many end-users are pushing for tariff relief. p >

this negotiation process unfolds as Sheinbaum seeks cooperation with Trump over immigration issues and drug trafficking along their shared border—an area where Trump insists mexico must take action against illegal activities.Homeland Security Secretary Kristi Noem accused Sheinbaum of fostering anti-deportation protests in Los Angeles; however, she firmly denied these allegations as “completely false.” p >

The discussions also precede an upcoming G7 summit in Canada where both leaders may meet face-to-face. p >

According to data from the Commerce Department, U.S.-Mexico steel imports reached approximately 3.2 million metric tons last year—making up about 12% of all U.S. steel shipments—a notable figure considering previous agreements aimed at controlling import levels based on averages from earlier years (2015-2017). p >

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