Mexico, US Near Deal on Steel, Aluminum Tariff Quotas

The United States and Mexico are nearing an agreement to ease the impact of President Donald Trump's steel and aluminum tariffs, which were doubled to 50% in early June. Negotiations are focusing on establishing a quota system that would allow a set volume of Mexican steel imports—approximately 2.8 million metric tons, or about 88% of Mexico's 2024 exports to the U.S.—to enter at a reduced tariff rate of 10%, with shipments above that threshold subject to the full 50% duty. This proposed quota aims to balance protecting U.S. domestic steel production while providing relief to American industries like automotive and construction that depend on stable steel supplies. Mexican officials have expressed optimism about concluding the talks soon, although no final deal has been announced yet. The tariff-rate quota approach reflects the Trump administration's broader strategy to support U.S. manufacturing while managing import volumes through negotiated limits rather than outright bans. Daily communication between the two countries continues as they work toward finalizing the details of the agreement.