Mexico will apply for exemptions from steel tariffs in the United States for key industries such as automobiles.

Mexican Economy Minister Marcelo Ebrard said on Tuesday that Mexico will request an exemption from the Trump administration's steel tariffs, which are being raised to 50% this week. Ebrard will travel to Washington on Friday to meet with US officials. He stated that if the tariffs continue to be implemented, Mexico will develop alternative options. Ebrard said, "This is unfair and unsustainable. We will submit relevant evidence on Friday to have Mexico excluded from this measure." Earlier on Tuesday, the US President signed an executive order increasing tariffs on steel and aluminum from the current 25% to 50%, effective from June 4th, in an effort to boost domestic manufacturing. He stated that this action was necessary for national security reasons. In a recorded audio message shared by Ebrard's PR team, Ebrard added that if these new regulations are confirmed, they will have an impact on industries such as automobiles, construction, and electronics. The US steel tariffs on Mexico will directly impact key industries such as automotive manufacturing and agriculture, raising business costs and consumer prices, particularly affecting US companies (such as Ford, GM) and Shenzhen Agricultural Power Group exporters relying on Mexican supply chains. Supply chain disruptions could exacerbate inflation, while Mexican countermeasures (such as taxing US Shenzhen Agricultural Power Group) could further escalate the impact. US steel tariffs on Mexico will directly raise raw material costs for downstream industries such as automotive, machinery, and construction, potentially increasing the cost of each car by $200-500 and weakening market competitiveness. As Mexico is the US's third-largest steel supplier (accounting for 13% of imports), its steel industry exports will suffer, though US domestic steel mills may benefit in the short term, the long term could force companies to seek higher-cost alternative supply sources, resulting in a decrease in overall industry chain efficiency. Steel tariffs could raise US steel prices by 5-8%, exacerbating manufacturing inflation pressure and potentially triggering retaliatory tariffs from Mexico on US goods, increasing price volatility risks. Tariffs could weaken Mexico's competitiveness as a "nearshore outsourcing" destination, slow business investment, and possibly trigger a USMCA trade dispute. Geopolitically, tariff negotiations could affect cooperation between the US and Mexico in areas such as immigration and drug enforcement, while US inflation pressure and slowing Mexican economic growth could mutually drag down each other, ultimately evolving into regional economic friction.