SAN DIEGO (Border Report) — Exporters of Mexican steel and aluminum are reporting a 63 percent drop in sales in the United States since tariffs went into effect earlier this year.
An industry analyst predicts exports will drop by more than 53 percent by the end of the year if the tariffs are not lifted.
On Feb. 10, President Donald Trump ordered a 25-percent tariff on Mexican and Canadian aluminum and steel imports.
This week, the president upped the tariffs to 50 percent.
Mexico’s National Industrial Aluminum Chamber told Mexico City’s El Sol Newspaper its members are feeling the negative impact, but refused to say anything about ongoing negotiations between the U.S. and Mexico to eliminate the tariffs.
Mexico’s Secretary of the Economy, Marcelo Ebrard, is reportedly leading a delegation to Washington this week to discuss the tariffs.
Steel manufacturers warn if the tariffs continue, the supply chain will be disrupted and shortages of products will become evident in the United States, along with much higher prices for products made with aluminum or steel.
They say for now, there is a surplus of steel worth about $4 billion that will increase if the tariffs remain in effect as fewer orders will be placed.
According to the Council on Foreign Relations, the United States depends on foreign partners for much of its aluminum supply, buying about half of their aluminum from abroad with roughly two-thirds of it coming from Canada.
Overall, Mexico’s Census and Data office reported a 2.7 percent drop in all exports to the United States during the month of April or about $1.64 billion worth of products and materials.
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