Concerns Over Increased Mexican Steel Imports and Potential U.S. Action

As the U.S. steel industry faces significant challenges in 2025, pressure is building for new tariffs on steel imports from Mexico. U.S. manufacturers and labor groups are raising concerns about the surge in Mexican steel exports, which have exceeded agreed-upon limits, as outlined in the U.S.-Mexico-Canada Agreement (USMCA). While Canada has historically been a primary steel exporter to the U.S., Mexico has now taken the lead, with steel imports reaching 3.6 million metric tons in 2024, compared to Canada’s 2.8 million metric tons.

The U.S. Department of Commerce reported that steel imports from Mexico have increased by over 470% above the baseline levels set by the USMCA in 2019. This surge has drawn criticism from various advocacy groups, such as the Coalition for a Prosperous America (CPA), which represents U.S. steel manufacturers. They argue that Mexico’s export practices are in violation of the trade agreement, prompting calls for tariffs to rein in the growing volume of imports.

Legislative and Union Support for Action on Mexican Steel Imports

In response to the increased pressure, lawmakers in the U.S. Congress have introduced the Stop Mexico’s Steel Surge Act, which aims to reinstate tariffs on Mexican steel imports. The bill, which has bipartisan support, reflects growing concern about the impact of foreign steel flooding the U.S. market. The Congressional Steel Caucus, with 100 members, has been vocal in pushing for action, and the United Steelworkers union has voiced its support for the bill.

However, the situation is more complex when considering Canada. The country has historically been the largest steel exporter to the U.S. and has largely been exempt from the Trump-era Section 232 tariffs, thanks to the USMCA. While President Trump has made occasional threats to impose tariffs on Canadian steel, those actions have yet to materialize, due in part to opposition from both U.S. manufacturers and the United Steelworkers union, which argues that Canadian steel is not the source of the problem.

With mounting concerns over trade imbalances and the integrity of the USMCA, the debate over steel tariffs will continue to be a critical issue for U.S. manufacturers and lawmakers alike in 2025.