US imports from Mexico have been steadily declining over the past few months. They dropped 32% month-on-month in June and almost 50% year-on-year to 191,000 tonnes. In June, the US and Mexico jointly issued a US tariff increase to 25% for Mexican steel unless the steel was poured and melted in North America. The US government wants to prevent countries such as China from circumventing its tariffs. 

Canadian steel producers have also been pushing the government to increase tariffs on Chinese steel, following in the footsteps of their North American partners. In May, President Joe Biden announced plans for an increase in Section 301 steel tariffs, from 7.5% to 25%. Additionally, Mexico placed a temporary tariff on Chinese products, including steel, in 2023. Steel producers in Canada do not want Chinese steel diverted to their market. Currently China is a distant second largest steel importer into Canada after the US. 

“Much attention has recently been placed on Mexican imports and more specifically Mexican imports from China,” says Laura Hodges, a US steel analyst from MEPS International. “While US imports from Mexico have pulled back, Mexico has been importing more steel from China.”  

Mexican imports rose by 61% in 2023 to 17.5 million tonnes, with imports from China leading the way, rising by an equivalent 61%, to 1.07 million tonnes, last year. Despite recent Mexican tariffs, Mexican imports from China rose by 10% through the first four months of 2024.