Colombia Raises Steel Tariffs 35% to Shield Local Industry

SEATTLE (Scrap Monster): Colombia increased tariffs on steel and metalworking imports to 35% through Decree 0264 of 2026, joining regional efforts to protect domestic industries from Asian competition. Mexico extends similar measures indefinitely.

Colombia’s President Gustavo Petro signed the decree alongside Minister of Commerce, Industry, and Tourism, Diana Morales, and Minister of Finance, Germán Ávila . The measure targets imports from countries without active trade agreements with Colombia, including China, Russia, Turkey, and India.

The steel sector represents approximately 10% of Colombia’s industrial GDP, and generates around 45,000 direct and indirect jobs while supporting more than 25,000 suppliers nationwide. "The steel and metalworking sector constitutes a strategic link in the national economy, supplying essential inputs for sectors such as construction, infrastructure, energy, transportation, capital goods and energy transition," the decree states.

The tariff increase covers specific subheadings including bars, profiles and tubes; wire, barbed wire and wire products; and other iron, steel and aluminum products. The measure will remain in effect for one year from its implementation date. After this period, the Committee on Customs, Tariff and Foreign Trade Affairs will evaluate the impact to determine next steps.

Colombia's steel industry recycles more than 1.2 million t of scrap annually. The government said promoting domestic production will support more sustainable production processes and reduce dependence on imported primary inputs.

Mexico Makes Asian Steel Tariffs Permanent

Colombia's tariff announcement mirrors actions by Mexico, which will permanently extend tariffs of 10% to 35% on steel imports from Asian nations, Economy Minister Marcelo Ebrard announced at the 78th General Assembly of CANACERO, the National Chamber of Iron and Steel.

The tariffs, originally imposed in April 2024 on 1,466 products, were set to expire in April 2025. They will now remain in place indefinitely, covering 220 steel products from South Korea, Vietnam, China and other nations without trade agreements with Mexico.

"We have to make a special effort to protect and defend the industry. The tariffs will be renewed permanently. The extension decree will be done. That is what (President Claudia Sheinbaum) has ordered us to do," Ebrard said.

Mexico's domestic steel industry faces capacity utilization of 55%, and exports to the United States down 55% over the past six months, the worst production crisis in 25 years. The sector confronts US Section 232 tariffs of 50% on Mexican steel exports, alongside increased low-cost Asian steel imports.

Mexico plans to phase out temporary import permits for steel products under the IMMEX program, requiring manufacturers to source materials domestically or pay applicable tariffs. The government will tighten oversight of special import regimes, including IMMEX, PROCET and the Regla Octava Club, coordinating with Customs and the SAT tax authority to prevent these mechanisms from serving as transshipment channels for Chinese and other Asian goods destined for the United States.

Ebrard said the goal is to "strengthen and harmonize the legal instruments of the treaty to confront unfair trade practices, mainly from China and other Asian countries."

The government will increase public procurement requirements for national steel content in public works projects at federal and state levels, replacing lowest-cost criteria with domestic content thresholds. Limiting reliance on Asian imports will be addressed in the first round of trade negotiations between Mexico and the United States, Ebrard said. 

Courtesy: www.mexicobusiness.com