Mexico will announce new measures next week if no agreement is reached regarding the recently increased tariffs on steel and aluminum, President Claudia Sheinbaum said Wednesday.
The announcement comes on the heels of steel and aluminum duties the United States announced would dramatically increase the amount of metals imported from Mexico, which then further aggravated the trade dispute between the North American countries.
Sheinbaum, during her daily morning press conference, called the hike an “unfair measure,” particularly so, since Mexico, the US, and Canada are all part of a trilateral free trade agreement, the so-called USMCA (United States-Mexico-Canada Agreement).
According to an executive proclamation by President Donald Trump, the US unilaterally implemented the increased tariffs on certain products of steel and aluminium, from 25% to 50%, effective Wednesday.
Although Mexico is taking a tough stance in defending its industrial sector, Sheinbaum stated that her administration is not seeking vengeance.
“It is not a matter of revenge, or retaliation, as they call it in English,” she added, emphasising that the goal is to preserve Mexican employment and businesses rather than escalating trade tensions.
Diplomatic talks underway
The Mexican administration is now working to resolve the matter in dialogue. Marcelo Ebrard, the economy minister, is to meet senior US officials this week to negotiate alternatives to the harsh tariffs.
These conversations will be pivotal, with Sheinbaum saying the outcome would dictate what happens next in Mexico.
If no resolution is reached, a formal response will be released next week.
By the same token, the US action forms part of a larger scheme to drive trade partners to provide more cost-effective conditions.
The draft letter to those countries still negotiating with the administration, seen by Reuters, states that the US is requesting “best offers” from its partners to prevent further punitive tariffs due to go into effect in early July.
This pressure campaign reflects a familiar US tactic deployed in previous trade disputes that used access to the American market as a bargaining chip.
Economic implications for Mexico
The unexpected tariff increase raises concerns for Mexico’s steel and aluminium industries, which export largely to the United States.
The Mexican government is particularly concerned about the impact on industrial supply chains and employment in areas reliant on metal production and processing.
While Mexico has preferential trade terms under the USMCA, the additional tariffs directly undermine those agreements and threaten to disrupt cross-border economic integration.
By avoiding rapid retaliation, Mexico appears to be treading carefully between safeguarding national interests and maintaining trade relations.
Sheinbaum’s statements indicate that, while Mexico opposes the US decision, it is committed to a rules-based strategy based on existing trade agreements.
Looking ahead
As negotiations continue over the next few days, the focus is now on Ebrard’s discussions with his US counterparts. The conclusion is likely to set the tone for the two countries’ broader trade relationship as both deal with escalating protectionist forces.
Sheinbaum’s measured approach indicates a desire to avoid a full-fledged trade war, but he also emphasises that Mexico will act if required.
The balance between diplomatic engagement and economic defence will be critical as Mexico considers its next move.
For the time being, the administration is focusing on diplomacy, but all eyes are on next week’s prospective announcement, particularly if the United States maintains its current tariff posture.
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