SOURCE / ECONOMY
US reportedly pushes Mexico to impose 232-style tariffs on Chinese steel, experts calls move blatant trade bullying
Published: Jul 27, 2026 12:37 PM
Steel rolls are seen at a factory of Ansteel in Anshan City, northeast China's Liaoning Province, Aug 19, 2021. Photo:Xinhua

Steel rolls are seen at a factory of Ansteel in Anshan City, northeast China's Liaoning Province, Aug 19, 2021. Photo:Xinhua


The US is pushing Mexico to impose Section 232-style duties on steel and aluminum imports from outside North America, aiming to create a unified regional tariff barrier against Chinese products amid a review of a regional trade deal, Bloomberg reported.

A Chinese expert has condemned the US move as blatant trade bullying, noting that the unreasonable demand would severely damage Mexico’s manufacturing competitiveness and real economy.

The US has asked Mexico to mirror Washington's tariff wall against Chinese steel and aluminum by imposing Section 232-style duties on imports from outside North America, according to four people with direct knowledge of the matter, Bloomberg reported on Sunday.
 
The goal is to preserve preferential treatment for steel produced in the US, Mexico and Canada while applying a common external barrier to Chinese imports. The precise rates and products covered by the potential tariffs remain under discussion, the people added. One of the sources said that the US aims to reach a framework agreement with Mexico by the end of the year. 

The request comes as part of negotiations over the North American trade deal known as the USMCA, according to Bloomberg.

The US and Mexico have been holding bilateral talks as part of a process to review the USMCA. The stakes have risen since the US declined on July 1 to renew the pact in its current form, instead shifting to rolling negotiations as it seeks to tighten regional rules of origin and limit China's role in North America, Bloomberg reported.
 
Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Monday that the US is using the tariff issue as a bargaining chip in the USMCA review negotiations.

"The US has yet to offer any tangible commitments toward a favorable deal outcome yet. Even if Mexico fully complies with US demands, it cannot expect a smooth and satisfactory review outcome. The US may continue to use the tariff issue as a tool for pressure, forcing Mexico into constant compromises," he warned. “Mexico should recognize that yielding to escalating US demands will never secure Washington's approval.” 

Zhou noted that such coercion would substantially raise the cost of upstream raw materials for Mexican manufacturers. As a major manufacturing hub, Mexico would face higher input costs, which would weaken the competitiveness of its finished products, hinder export growth and undermine long-term industrial development. By shifting its own trade protection costs to neighboring countries through unilateral economic coercion, the US is engaging in typical trade bullying, he said.

In June 2025, commenting on the US move to raise Section 232 tariffs on imported steel and aluminum and related derivative products from 25 percent to 50 percent, He Yongqian, spokesperson for China's Ministry of Commerce, said at a press conference that Section 232 tariffs are typical unilateralism and protectionism and have already been ruled by the WTO dispute settlement mechanism to be inconsistent with WTO rules. 

"The latest US tariff hike on steel, aluminum, and related derivatives is not only self-defeating and detrimental to industrial security, but also severely destabilizes global industrial and supply chains, a move that has already drawn opposition from multiple countries," He said.

Global Times