Steel products produced in Mexico will only be exempt from tariffs on their exports to the United States if that metal is melted and poured in the United States, should President Donald Trump’s orders remain unchanged.
On February 10 and 11, 2025, President Donald Trump issued two proclamations. In them, he ordered the Secretary of Commerce to modify tariff rates. These measures affected imports of steel, aluminum and various derivative products. The new tariffs are scheduled to take effect on March 12, 2025.
Steel products
The Proclamations limit the tariff exemption for steel and aluminum products from Mexico. Now, if these documents go into effect, only downstream steel that is smelted and poured in the United States will be eligible. This excludes material processed in Canada or Mexico from such exemptions.
Background: In July 2024, the administration of then U.S. President Joe Biden detected a sharp increase in steel imports from Mexico. To prevent countries such as China from circumventing tariffs through transshipment, he imposed “melt and pour” requirements. This measure established a 25% tariff on steel and aluminum from Mexico unless the material was originally smelted and poured in Mexico, Canada or the United States.
Trump’s executive orders include several key measures:
- They eliminate country-by-country exemptions and reinstate the 25% tariff on steel imports from the European Union, Brazil, South Korea, Argentina, Australia, Canada, Mexico, Japan and the United Kingdom.
- Increase the tariff on aluminum from 10% to 25%, eliminating alternative arrangements and previous exclusions.
- Extends these tariffs to steel and aluminum products.
Automotive Industry
The USMCA tightened the rules of origin for vehicle trade between Mexico, the United States and Canada, introducing new requirements:
- Regional content: vehicles must have 75% North American content.
- Wage requirement: 40-45% of the content must be manufactured with labor earning at least US$16 per hour.
- Use of steel and aluminum: 70% of these materials must be of North American origin and the steel must be smelted and poured in the region.