Ternium chief says Mexico tariffs 'irrational'

In 2024, Mexico will have a deficit with the US of 2.3 million tons of steel, said Máximo Vedoya, chief executive of the Luxembourg-based Latin American steel supplier and manufacturer. He also is president of Caintra.

Vedoya said statements from the Steel Manufacturers Association (SMA) about rising Mexican steel exports are “incorrect and misinformed,” according to Reportacero. Instead, he noted US exports to Mexico have grown.

“The United States exports more steel to Mexico than we export to them, and yet their industry is seeking to impose 25% tariffs. It is an irrational measure that would harm both their own industry and ours,” Vedoya said.

SMA has lauded President-elect Donald Trump’s tariff proposal. Last week, the organization said it submitted a five-point plan, urging Trump to tighten tariffs, among other measures it says will bolster the US steel industry.

But Mexico said it would hit back, with Mexico President Claudia Sheinbaum saying the country could retaliate with tariffs of its own.

“One tariff would be followed by another in response, and so on until we put at risk common businesses,” Sheinbaum said in reference to US automakers with plants in both the US and Mexico.

Vedoya urged a review of the United States-Mexico-Canada Agreement (USMCA), scheduled for 2026, as an opportunity to address trade discrepancies, as reported by Reportacero. He added that protectionist policies undermine the USMCA, upend supply chains, and damage the Mexican economy.

“The key is to work together to strengthen the region. There are more similarities than differences, and if we focus on them, we can turn North America into an even greater industrial power,” he was quoted as saying.