The month-long “truce” that Donald Trump granted Mexico to implement 25% tariffs on all Mexican products could be blown up sooner, if he follows through on his threat to impose tariffs on steel and aluminum “on all countries in the world,” as he announced this Sunday.
From inside Air Force One on his way to New Orleans to attend the Super Bowl, Trump said he would give more details about his new tariff blackmail on Monday, but anticipated that they would be put into practice “almost immediately” for “all countries,” implying that Canada and Mexico, the first and third largest exporters of steel, and the first and fifth largest exporters of aluminum to the United States, respectively, will also be on the list.
During his first term (2017-2021) Trump imposed tariffs of 25% on steel and 10% on aluminum, but then granted duty-free quotas to several trading partners, including Brazil (second largest exporter of steel), as well as Canada and Mexico.
Blow to Mexican industry
If it is confirmed that this time Trump will not “save” his T-MEC partners, the blow would be very hard for the national steel industry, especially in the state of Nuevo León.
According to data from the Government of Mexico, sales of iron and steel products to the United States obtained profits of 8,106 million dollars.
The federal entities with the highest international sales are Nuevo León (2,715 million dollars) Veracruz (1,572), Coahuila (1,286), Mexico City (698) and Tamaulipas (649).
“If they charge us, we charge them”
Trump also announced that on Tuesday or Wednesday he will announce reciprocal tariffs with other commercial partners, without specifying which countries, what percentage and what products would be affected.
“It is very simple: if they charge us, we charge them. “If they’re charging us 130% and we’re not charging them anything, that’s not going to work,” Trump told reporters when asked about reciprocal tariffs.
Source: cronica
