Will Mexico Join the U.S. in Imposing Tariffs on Chinese Steel and Aluminum? Is It Really Worth It?

Is Mexico Planning to Go to War with the Entire World by Joining Forces with the U.S. to Impose Higher Steel and Aluminum Tariffs on China?

After the United States announced a new round of global tariff policies, the Trump administration has intensified pressure on Mexico, urging it to impose additional tariffs on steel and aluminum products from outside North America, in an effort to restrict Chinese steel and aluminum from entering the U.S.-Canada-Mexico market.

According to sources, this move aims to further solidify the USMCA (United States-Mexico-Canada Agreement), preventing foreign goods from benefiting from preferential trade treatment within the North American region.

Mexico is reportedly considering this proposal in exchange for Trump showing leniency toward Mexico, thereby avoiding additional U.S. tariffs—Canada serves as a clear precedent.

Notably, this proposal was not initially put forward by the U.S., but rather by Mexico itself. According to informed insiders, Mexico had already suggested earlier this year to further reduce imports of Chinese steel in an attempt to ease tensions in U.S.-Mexico trade relations.

In reality, even if Mexico were to implement such measures, the impact on China would be minimal. Currently, Chinese steel and aluminum products face a steep 50% tariff in the U.S., effectively halting nearly all direct exports from China to the U.S.

Even if some Chinese steel and aluminum products enter the U.S. indirectly through third countries like Mexico, their share remains extremely small. China’s primary export markets are regions such as ASEAN and the European Union—not North America.

Moreover, Mexico has already imposed tariffs of 10% to 50% on thousands of product categories imported from China, including steel and aluminum. Further increases in tariffs would merely close off the remaining limited channels for indirect Chinese steel and aluminum exports—hardly posing a significant threat to China.

On the contrary, if Mexico follows the U.S. in imposing higher tariffs, the most affected would be steel and aluminum exporters from other countries targeting the North American market. This could trigger retaliatory measures from multiple nations, ultimately harming Mexico’s own export competitiveness.

It doesn’t make much sense for Mexico to alienate the entire world just to please the United States.

Original article: toutiao.com/article/1871845689072708/

Disclaimer: The views expressed in this article are those of the author alone.