Mexico Hints at Retaliation Against U.S. Steel Tariffs

SEATTLE (Scrap Monster): The Mexican Economy Minister Raquel Buenrostro announced plans to retaliate against potential tariffs imposed by the U.S. on steel imported from the country. The declaration came in response to concerns raised by the U.S. Trade Representative over spiralling steel import volumes from Mexico. The development is likely to escalate the trade tensions between the two countries.

While referring to skyrocketing surge of steel and aluminum products from Mexico, the U.S. Trade Representative Katherine Tai hinted at the possibility of the U.S. reinstating import tariffs, citing national security reasons. Incidentally, Mexico has been accused of lacking transparency with regards to disclosure of the origins of steel and aluminum products.

In response, the Mexican Economy Minister outlined that his country may be forced to engage in tit-for-tat tariff impositions in order to ensure that its economic interests are protected.

Meantime, trade analysts warned that implementation of tariffs by the U.S. and retaliatory tariffs by Mexico could disrupt the trade supply chains across the border, which in turn will badly impact industries on both sides. Additionally, it will also affect the immediate economic interests of both the countries. They called upon the countries to reach an amicable settlement at the earliest.

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