Trump May Soften Stance? U.S. and Mexico Reportedly Nearing Steel Tariff Exemption Agreement

According to sources familiar with the matter, the United States and Mexico are nearing an agreement that would remove the 50% tariff imposed by former President Trump on certain volumes of steel imports, effectively restoring a similar arrangement from Trump’s first term. While Trump is not directly involved in the negotiations, any agreement reached will still require his approval. The discussions are reportedly being led by U.S. Commerce Secretary Howard Lutnick. Sources indicated the agreement is not yet finalized. Under current draft terms, American buyers would benefit from duty-free treatment as long as Mexican steel imports remain within a quota based on historical trade levels.

The new import cap is expected to be higher than the limit agreed upon during Trump’s first term. However, these quotas have never been fixed figures, but rather mechanisms to prevent sudden surges in import volumes. According to the U.S. Department of Commerce, the United States imported approximately 3.2 million metric tons of steel from Mexico in the previous year, representing 12% of its total steel imports. In 2019, during Trump’s first term, the two countries agreed to limit imports to the average levels recorded between 2015 and 2017.As of this writing, neither the White House nor the office of Mexican President Claudia Sheinbaum has responded to media inquiries.

On Tuesday, during a public event, Mexican Economy Minister Marcelo Ebrard stated that he had informed U.S. officials last week that imposing steel tariffs on Mexico was unreasonable, citing that the United States exports more steel to Mexico than it imports. Last Friday, Ebrard also shared a photo of himself shaking hands with Lutnick in Washington. Ebrard told reporters, “We are waiting for their response, because last Friday we provided them with the details of our argument, and we are right. So we will wait for their response, likely this week.”

These discussions come as Sheinbaum seeks to reach common ground with Trump on border migration and drug trafficking—areas where Trump has demanded stronger Mexican action. On June 9, Sheinbaum confirmed her attendance at the upcoming G7 Summit in Canada and noted that a bilateral meeting with U.S. President Trump is possible. Sheinbaum added that immigration would be among the topics discussed. Mexico’s foreign minister is currently coordinating the meeting agenda. In addition to a potential meeting with Trump, Sheinbaum is also scheduled to hold bilateral talks with Canadian Prime Minister Carney.