The United States is pressing Mexico to impose tariffs modeled on Washington's trade barriers against Chinese steel and aluminum, seeking a common North American tariff wall that would preserve preferential treatment for metals produced in the United States, Mexico and Canada.
U.S. officials have asked Mexico to apply Section 232-style duties to steel and aluminum imported from outside North America, according to four people familiar with the negotiations cited by Bloomberg.
Mexico is open to considering the proposal as part of broader talks over the U.S.-Mexico-Canada Agreement, though the products and tariff rates covered remain under discussion. Washington hopes to reach a framework agreement by the end of the year.
The proposal would require Mexico to move closer to the broader U.S. tariff system. Washington currently imposes a 50% Section 232 tariff on basic steel and aluminum from China and most other economies, along with a 25% duty on derivative products. Mexico instead applies duties product by product, with rates of up to 25% on steel from countries without Mexican trade agreements.
Mexico has already taken steps to restrict imports from countries with which it lacks trade deals, imposing new tariffs on roughly 1,500 products in a measure primarily affecting China. Earlier this year, Mexican officials also offered to sharply reduce purchases of Chinese steel, Bloomberg reported.
The request comes as Mexico seeks to protect its preferential access to the U.S. market. An analysis published by the Mexican Institute for Competitiveness found that Mexico accounted for 17% of U.S. imports in 2025 and became the largest buyer of U.S. exports for the first time in a calendar year.
Mexico's effective tariff rate stood at 3.4% in March, below those faced by Germany, Japan and South Korea. The institute attributed much of that advantage to the USMCA, estimating that approximately 88% of Mexican exports complied with the agreement's requirements during 2026.
The negotiations follow new U.S. tariffs imposed July 24 on goods from 60 trading partners over alleged failures to restrict products made with forced labor. Mexico received a 10% rate, although USMCA-compliant goods and products already covered by Section 232 tariffs, including steel and aluminum, were exempt.
U.S. steelmakers are also seeking stricter regional origin requirements, including a rule requiring steel to be melted and poured in North America and an increase in the North American steel content required in vehicle manufacturing from 70% to 85%.
