Mexico Steel Import Restrictions Tighten as Government Purges Foreign Suppliers

Mexico Steel

Over 1,000 Steel Suppliers Face Removal Amid Triangulation Concerns

Mexico steel import restrictions are intensifying as the government moves to purge 1,062 foreign suppliers from its official registry. The Ministry of Economy uncovered irregularities in over 47% of registered foreign steel firms, with many found to be non-existent or misrepresented. Authorities are conducting site inspections in six countries, including Malaysia.

Anti-Tariff Triangulation Drives Trade Crackdown

The move aims to prevent tariff circumvention practices, especially the rerouting of Chinese steel through Mexico to access the U.S. duty-free. Mexico steel import restrictions follow U.S. accusations of trade triangulation and recent tariff increases under former President Donald Trump. Despite exemptions under USMCA, Banco BASE estimates Mexico faces a 19.51% effective tariff rate on goods entering the U.S.

Domestic Steel Use to Rise in Energy Infrastructure

Mexico’s government is pushing for more domestic steel usage in national energy projects. The state utility CFE plans to increase the use of Mexican steel in transmission towers from 30% to 60% by 2030. However, limited domestic suppliers for turbines and generators remain a bottleneck. Engineers are consulting on integrating Mexican-made cable and steel into upcoming infrastructure.

The Metalnomist Commentary

Mexico’s regulatory push highlights a broader shift toward trade transparency and domestic industrial development. The steel sector will feel immediate impacts, but long-term resilience hinges on capacity-building within Mexico’s heavy equipment supply chain.