Mexico and Brazil, the Second and Third Largest Steel Exporters to the U.S.,
Take a Cautious Stance
Mexico and Brazil, the second and third largest steel exporters to the United States, have stated that they will not immediately retaliate against the 25% tariffs on steel and aluminum imposed by the Donald Trump administration. This stance differentiates them from the European Union (EU), Canada, and others who strongly opposed the U.S. tariffs and promptly announced retaliatory tariffs.
On the 12th (local time), Claudia Sheinbaum, President of Mexico, said at a regular press conference, "We will not immediately implement measures corresponding to the U.S. steel and aluminum tariffs," adding, "because the door for dialogue remains open."
President Sheinbaum mentioned that talks between Marcelo Ebrard, Mexico’s Minister of Economy, and Howard Lutnick, U.S. Secretary of Commerce, will continue, and that a decision on whether to impose retaliatory tariffs will be made around April 2. She said, "That day (April 2) is the deadline for consultations set during a prior phone call with President Trump and the time when the U.S. government announced it would impose reciprocal tariffs on all countries worldwide," adding, "We hope the U.S. will not impose reciprocal tariffs on Mexico."
According to data released by Mexico’s Ministry of Economy, as of 2023, the U.S. surplus in steel and aluminum products exported to Mexico reached $6.897 billion (approximately 10 trillion KRW). The Mexican Minister of Economy pointed out at a press conference last month that "imposing tariffs on countries that import more of their products is very unusual and unjust."
Contrary to the Mexican government’s position, the steel industry is urging immediate retaliatory tariffs against the U.S. The Mexican Steel Industry Association (CANACERO) stated in a related press release, "The tariffs will affect 75% of Mexico’s steel exports," emphasizing, "If Mexican steel is not excluded from the U.S. tariffs, the same measures need to be taken against the U.S."
Brazilian President Luiz In?cio Lula da Silva also showed a cautious stance regarding retaliatory tariffs against the U.S. According to Brazilian media outlet G1, on the same day, Fernando Haddad, Brazil’s Minister of Finance, said, "President Lula has instructed a calm response."
At a meeting with steel industry representatives in Bras?lia that day, Minister Haddad said, "The U.S. stands to lose more from this measure," adding, "We have previously negotiated under even less favorable conditions."
Brazil is actively engaging in tariff negotiations with the U.S. The Brazilian Ministry of Foreign Affairs announced on X (formerly Twitter) that "Mauro Vieira, Brazil’s Minister of Foreign Affairs, held a phone call with Jamison Greer, U.S. Trade Representative (USTR), and agreed to form a working group to address the tariff issues."
According to statistics from the International Trade Administration (ITA) under the U.S. Department of Commerce, the major steel exporters to the U.S. last year were Canada ($7.14 billion, 23%), Mexico ($3.5 billion, 11%), Brazil ($2.99 billion, 9%), South Korea ($2.9 billion, 9%), Germany ($1.9 billion, 6%), and Japan ($1.74 billion, 5%), in that order.
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