Sheinbaum Calls New U.S. Tariffs on Mexican Steel and Aluminum “Unjustified”

Mexican President Claudia Sheinbaum has slammed the U.S. government’s decision to double tariffs on Mexican steel and aluminum, calling the move “unjustified” and “legally baseless.” The measure, which increases tariffs from 25% to 50%, took effect on Wednesday, June 4, 2025.

During her morning press conference, Sheinbaum stated that the action is “unsustainable” and will negatively impact the Mexican economy. She warned that the decision will raise prices for U.S. consumers and put Mexican jobs at risk.

Sheinbaum announced that she would meet later that day with representatives from Mexico’s steel and aluminum chambers to evaluate possible responses. She also confirmed that Economy Secretary Marcelo Ebrard will meet with the U.S. Secretary of Commerce on Friday to seek a resolution that avoids further harm to Mexico’s industry.

The president stressed that if no agreement is reached, Mexico will take measures next week to protect its jobs and industrial sector. However, she clarified that these would not be retaliatory actions, but necessary steps to safeguard the national economy.

The tariff hike has sparked concern in Mexico, which exports over $20 billion in steel and aluminum to the U.S. annually, making it the second-largest supplier of these materials. The measure is estimated to put 380,000 jobs and up to $7.5 billion in investments at risk.

The Mexican government argues that the U.S. decision lacks legal grounding, particularly within the framework of the USMCA trade agreement, and is hopeful that ongoing negotiations will lead to a reversal.

How Does This Measure Affect Mexicans?

The U.S. government’s decision to impose a 50% tariff on imports of Mexican steel and aluminum not only strains diplomatic relations but could also directly impact the lives of millions of people.

First, it threatens around 380,000 direct and indirect jobs tied to the steel and aluminum industries, particularly in states like Nuevo León, Coahuila, Veracruz, and the State of Mexico, where many production plants are located.

The tariff increase could also stall up to $7.5 billion in potential investment, reducing economic development opportunities across several regions. Affected companies may face narrower profit margins or even scale back production.

For everyday consumers in Mexico, the fallout may also be felt. As exporting becomes more expensive, companies could shift some of the added costs to the domestic market, raising prices on goods such as appliances, tools, cars, and construction materials.

Lastly, this trade dispute could ripple into the exchange rate and broader financial stability. A prolonged conflict with Mexico’s top trading partner could create uncertainty in financial markets, impacting both major industries and households across the country.