Trade Cases

US, Mexico mull tariff-rate quota system: Report

June 26, 2025

Negotiations between the US and Mexico on steel imports could be targeting a tariff-rate quota system, according to an article in Bloomberg.

The article, published earlier this week, said the quota system would be based on average steel imports from Mexico during the period 2015-17.

The report cited sources familiar with the matter.

Referencing US Commerce Department data, the article said the 2015-17 time period would translate to ~2.8 million metric tons of steel.

Any imports under the amount delineated in the deal would not have the current 50% Section 232 steel tariff. However, the article said those imports could still be hit with a 10% “baseline charge.”

Recall that earlier this month President Trump doubled the Section 232 tariffs on steel and aluminum from 25% to 50%.

The Trump administration said there would be few exceptions to the 50% tariff. And the administration initially granted an exemption only to the UK. But within a week, reports emerged about potentially significant exemptions for Mexico. Canada has also taken actions that appear aimed at reducing its tariff.

Requests for comment from the US Commerce Department and Mexico-based steel trade group Canacero were not returned by time of publication.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.