Navigating New U.S. Steel Import Regulations: Implications for Mexican Exporters
On February 10, 2025, the United States announced adjustments to its steel import policies, reinstating a 25% tariff on steel imports from several countries, including Mexico. This move aims to bolster the U.S. domestic steel industry by mitigating the effects of global excess capacity and addressing national security concerns. Notably, previous exemptions and alternative agreements have been revoked, subjecting Mexican steel exports to these heightened tariffs.
For Mexican manufacturing plant managers, this policy shift necessitates a strategic reassessment of export operations. The increased cost burden due to the 25% tariff could affect pricing structures, profit margins, and overall competitiveness in the U.S. market. Industries heavily reliant on steel components, such as automotive and construction equipment manufacturing, may experience the most significant impacts. It's crucial to analyze supply chains, explore alternative sourcing options, and consider potential adjustments in production processes to mitigate these effects.
Engaging in dialogue with U.S. partners and staying informed about further policy developments will be essential. Collaborative efforts to seek possible exemptions or negotiate favorable terms could provide some relief. Additionally, exploring diversification into other markets less affected by these tariffs might offer new opportunities. Proactive adaptation to these regulatory changes will be key to maintaining a strong export presence in the evolving U.S. trade environment.
The policy will apply starting March 12th, 2025.
Trump Moves to Impose Reciprocal Tariffs, But Not Right Away
Rates will consider non-tariff barriers, including EU’s VAT
President announced move before meeting with India’s PM Modi
President Donald Trump ordered his administration to consider imposing reciprocal tariffs on numerous trading partners, raising the prospect of a wider campaign against a global system he complains is tilted against the US.
The president on Thursday signed a measure directing the US Trade Representative and Commerce secretary to propose new levies on a country-by-country basis in an effort to rebalance trade relations — a sweeping process that could take weeks or months to complete, according to a senior White House official, leaving no clear date when they would take effect.
Fresh import taxes would be customized for each country, meant to offset not just their own levies on US goods but also non-tariff barriers the nations impose in the form of unfair subsidies, regulations, value-added taxes, exchange rates and other factors that act to limit US trade, said the official, who briefed reporters before the announcement.
“I’ve decided, for purposes of fairness, that I will charge a reciprocal tariff, meaning whatever countries charge the United States of America,” Trump said in the Oval Office. “In almost all cases, they’re charging us vastly more than we charge them but those days are over.”
Trump told reporters that he would enact import taxes on cars, semiconductors and pharmaceuticals in addition to the reciprocal tariffs.
The text of Trump’s directive on tariffs was not immediately provided by the White House. Trump cited barriers in the EU, including a VAT, as an example of what the US is looking to respond to, while the official said Trump has also singled out Japan and South Korea as nations that he believes are taking advantage of the US, and thus could be targeted in his latest push.
Reciprocal tariffs would amount to Trump’s broadest action to address US trade deficits and what he characterizes as unfair treatment of American exports around the globe. Trump has already imposed 10% tariffs on Chinese goods and plans to slap 25% duties on all US steel and aluminum imports next month.
Read More: Trump Sets 25% Steel, Aluminum Tariffs, Widening Trade War
Yet the president’s decision not to implement tariffs right away could be seen as an opening bid for negotiation — following the same strategy he’s already used to extract concessions from Mexico, Canada and Colombia — rather than a sign he’s committed to following through.
The president is hoping to have a discussion with other nations about how existing policies have created an imbalanced trade environment, the official said. And he’s more than happy to lower tariffs if countries want to pare their levies or remove other trade barriers, the official added.
Whatever happens, Trump’s brinkmanship has injected uncertainty into the global economy, with businesses and consumers waiting to see how Trump proceeds on decision that could disrupt the US’s trade relationships with the rest of the world.
Earlier: Trump, Modi to Discuss Trade Pact as Reciprocal Tariffs Loom
Reciprocal tariffs are expected to hit hard in less-developed economies where average duties on US products are higher, according to Bloomberg Economics. It differs from a universal levy on all imports, as Trump proposed during the 2024 presidential campaign. The official said Trump could divert back to a global tariff strategy later on.
Trump announced his move just hours before he was set to host Indian Prime Minister Narendra Modi, whose country stands to be affected by reciprocal tariffs more than many other major trading partners. Trump has repeatedly criticized India’s its high tariff barriers.
U.S. to Designate Mexican Cartels as Terrorist Organizations
The U.S. government has reportedly finalized a list of cartels that will be classified as terrorist organizations, according to The New York Times. The State Department’s designation is expected to include the Sinaloa Cartel, Jalisco New Generation Cartel (CJNG), Northeast Cartel, La Familia Michoacana, and Cárteles Unidos. Additionally, Venezuela’s Tren de Aragua and the MS-13 gang will also be classified under this designation.
This move could have major implications for U.S.-Mexico relations, law enforcement efforts, and international security policies.
HOT TOPICS: Legislative and Regulatory Issues
LABOR
BILL TO AMEND AND ADD PROVISIONS TO THE FEDERAL LABOR LAW, THE FEDERAL LAW OF PUBLIC SERVICE WORKERS, AND ARTICLE 123 OF THE CONSTITUTION
Presented by: Sen. J. Félix Salgado Macedonio (MORENA)
- Objective: Grants six weeks of paid paternity leave for birth or adoption, extendable to eight weeks if the child has a disability or requires hospitalization. Establishes one month of prenatal leave for mothers and two months of postnatal leave for both parents.
- Status: Presented to the plenary of the Chamber of Deputies.
Bill to amend Article 123 of the Constitution
Presented by: Parliamentary Group of Movimiento Ciudadano
- Objective: Establishes that for every five days of work, employees are entitled to at least two full-paid rest days.
- Status: Referred to the Commission of Constitutional Points for drafting.
BILL ON THE NATIONAL WORKERS’ HOUSING FUND INSTITUTE LAW AND THE FEDERAL LABOR LAW
Presented by: Housing and Social Welfare Labor Committees
- Objective: Establishes the framework for INFONAVIT to act as a housing developer, regulates the social leasing model introduced after the constitutional reform, strengthens housing supply to benefit workers and boost the economy, and allows INFONAVIT to collaborate with public and private entities in housing construction.
- Status: Approved in Commissions.
The fast-changing labor landscape in Mexico continues into 2025. In 2024 alone, there were five major labor law reforms, covering platform workers, rest periods, and equal pay provisions, among other critical updates. This rapid pace of regulatory changes shows no signs of slowing, with the first labor reform of 2025 set for approval today.
One of the most debated proposals this week is the Affordable Housing Bill, of which Congress has approved. Under the new framework, the state will finance housing construction using workers' housing savings, a decision that has sparked strong opposition from unions concerned about the management of these funds. Despite the controversy, the reforms do not impose additional costs or obligations on employers.
Despite the pushback, the reform is expected to pass, underscoring the need for manufacturers to closely monitor legislative developments that could affect workforce management and financial planning. -Alvaro Garcia, VP HR
TRADE
BILL TO ADD ARTICLE 11 BIS TO THE FOREIGN TRADE LAW
Presented by: Sen. Waldo Fernández González (NL - PVEM)
- Objective: Creates the "Made in USMCA" seal to enhance identification and logistics within the regional supply chain. The Ministry of Economy, through the Foreign Trade Commission, will grant the seal to products meeting USMCA Rules of Origin. The General Directorate of Standards has 60 days to establish specifications and authorization processes.
- Status: Presented to the Plenary of the Senate.
HEALTH
BILL TO AMEND AND ADD VARIOUS PROVISIONS TO THE GENERAL HEALTH LAW REGARDING ACCESS TO CLINICAL LABORATORY SERVICES
Presented by: Sen. Francisco Ricardo Sheffield Padilla (MORENA-Gto)
- Objective: Recognizes access to quality clinical laboratory services as a basic health service, ensuring public availability, particularly in marginalized areas. Establishes a National Laboratory Network, regulatory requirements, and public-private collaboration for expanded coverage. The Ministry of Health must update regulations within 90 days and implement a modernization program for clinical laboratories.
- Status: Published in the Parliamentary Gazette.
FINANCIAL
BILL TO ADD CHAPTER II BIS TO TITLE VII OF THE INCOME TAX LAW, REGARDING TAX INCENTIVES FOR HIRING WOMEN
Presented by: Parliamentary Group of the National Action Party
- Objective: Grants a tax incentive to individuals and legal entities paying income tax who hire women aged 18 and over. Employers may deduct 25% of wages paid to female employees. This deduction increases to 35% if they provide certified training programs. Employers must comply with social security obligations.
- Status: Presented to the Plenary of the Senate.
BILL TO ADD SECTION XI BIS TO ARTICLE 171 OF THE SECURITIES MARKET LAW
Presented by: Sen. Juanita Guerra Mena (Mor - PVEM)
- Objective: Allows brokerage firms to execute fund transfers and payment obligations based on client instructions through payment systems, in accordance with applicable law.
- Status: Presented to the Plenary of the Senate.