The United States and Mexico are about to reach an agreement on steel tariffs

ChainCatcher news, according to Jinshi reports, informed sources reveal that the United States and Mexico are about to reach an agreement to eliminate the 50% tariff imposed by Trump on steel imports below a certain quantity. Trump is not directly involved in the negotiations, which are led by U.S. Secretary of Commerce Gina Raimondo.

The aforementioned sources stated that under the current terms, U.S. buyers can import Mexican steel duty-free as long as they keep the total shipment volume below levels based on historical trade volumes. The new cap will be higher than the limit allowed under a similar agreement during Trump's first term. According to data from the U.S. Department of Commerce, the total amount of steel imported by the U.S. from Mexico last year was about 3.2 million tons, accounting for 12% of the total U.S. steel imports.

During Trump's first term, the U.S. and Mexico reached an agreement in 2019 to prevent import volumes from exceeding the average levels during the period of 2015-2017.