Mexican steelmakers are struggling to find outlets for production due to sluggish domestic demand and the elimination of US steel tariff exemptions. President Donald Trump revoked all exemptions from the 25% steel import tariff, effective March 12. Canada, Mexico, and other countries were previously exempt under the US-Mexico-Canada Agreement (USMCA). The new tariffs also include "derivative steel articles."
Mexico produced 18.2 million metric tonnes of steel in 2024, down from 19.85 million tonnes in 2023. The country exported 3 million tonnes of steel in 2024, with 2.3 million tonnes going to the US. However, Mexican mills are expected to add more than 5 million tonnes of additional steel production by the first half of 2026, including from Ternium's slab mill in PesquerĂa, Nuevo LeĂłn.
In the absence of overseas demand, Mexican steelmakers may have to rely on a shaky domestic market. Federally funded infrastructure projects have concluded, and demand has yet to recover. President Claudia Sheinbaum, who took office in October, is expected to announce her full infrastructure plan on February 17.
Nearshoring efforts and new foreign direct investments in Mexico have stagnated. The market has few options for Mexican-produced steel without government-funded projects, amid expectations of slower economic growth this year.
