Mexico concerned on US steel tariffs

mexico city — Mexico’s economy minister met with top US trade officials midway through the latest push to renegotiate the Nafta trade deal, as concerns about steel added to trade tensions between the two countries.

Economy Minister Ildefonso Guajardo met US Commerce Secretary Wilbur Ross and US Trade Representative Robert Lighthizer during a hastily-arranged visit to Washington as US, Mexican and Canadian officials held a seventh round of negotiations to rework the North American Free Trade Agreement. In a statement, Mexico’s economy ministry said Guajardo had discussed possible US steel import tariffs with Ross, as well as bilateral agreements over tomatoes and sugar, which have been renegotiated periodically.

Guajardo also met with Lighthizer to discuss the agenda of the ministerial meeting on March 5 at the conclusion of the latest Nafta talks in Mexico City, his ministry said.

US President Donald Trump is considering imposing steel and aluminium tariffs on imports from China and elsewhere following a probe looking at whether imports of the metals threatened US national security.

Among the options before Trump is a tariff of at least 24 per cent on steel products from all countries. However, Trump could decide to exempt some countries from any measures, including its Nafta trading partners and has indicated he might exempt Canada.

A Mexican official said the Ross meeting would address Mexican concerns over trade in steel and tomatoes, noting that Mexico would retaliate against steel tariffs.

Ross has said he would not be surprised to see countries challenge any steel tariffs at the World Trade Organisation. There are concerns that stiff US tariffs could raise global steel prices, which would impact Mexico. —