Trade Cases

Canacero claims 'surge' of US steel exports, backs retaliation against potential tariffs

January 29, 2025

Mexican steel trade association Canacero said US steel exports represent “a threat to the Mexican steel industry.”

Canacero also backed retaliatory measures if President Trump enacts 25% tariffs on Mexico by Feb. 1.

President Trump’s proposed tariffs on Mexican steel “would violate the USMCA.” Therefore, the Mexican steel industry would support imposing “proportional and immediate retaliatory measures,” the group said.

Recall that Trump has since November threatened 25% tariffs on both Canada and Mexico. And when he was inaugurated on Jan. 20, Trump threated to impose them around Feb. 1.

Canacero also flipped the script on the US on the matter or “surging” steel exports. The US claims that Mexico has surged steel shipments to the US. The association the opposite – that the Mexican market was grappling with a surge of exports from the US.

“The Mexican steel industry faces a critical challenge due to a significant surge in the exports of finished steel products from the US, which do not comply with the joint statement agreed by both countries,” Canacero said in a statement on Tuesday.

The USMCA remains the best way to address issues within the North American trading bloc. “We reaffirm our belief that the USMCA and regional integration are the best tools to address unfair trade practices from China,” the association said.

Trade imbalance?

Canacero claims that between 2015 and 2023, the bilateral trade of finished steel products between the US and Mexico reflects a 1.2-million ton average annual surplus in favor of the US.

“Furthermore, in 2024 the surplus is going to double, reaching historic levels without precedent,” the association said.

All told, in 2024 the US held a 15.9% share of the total Mexican steel market. Mexico, meanwhile, accounted for only 2.2% of the US steel market, Canacero said.

Circumvention

US interests have also claimed that Mexico is circumventing US duties and tariffs. Canacero disputes that. The group said it is the US that is guilty of such practices.

Canacero alleges that 27% of the steel that the US exports to Mexico has its origin in Asian countries, with “possible cases of circumvention from Malaysia.” The group made that claim citing data from Mexico’s Ministry of Economy.)

Finally, Canacero said that “allegations that Mexico serves as a back door for China’s triangulation of Asian steel to the US are unfounded.”

The full text of the statement can be found here.

Ethan Bernard

Ethan Bernard is a reporter and editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.