Overview

• The U.S. and Mexico could soon agree to remove President Trump’s 50% tariffs on Mexican steel imports up to a quota based on historical trade volumes.
• Commerce Secretary Howard Lutnick is leading negotiations on the potential agreement, which still requires the president’s sign-off.
• The proposed tariff-free cap would exceed the limit set in a similar deal negotiated during Trump’s first term.
• The U.S. imported about 3.2 million metric tons of steel from Mexico in 2024, underscoring the exemption’s potential scope.
• Following news of the near-term deal, shares of Cleveland-Cliffs fell 7.86%, Nucor dropped 5.76% and Steel Dynamics declined 2.85%, while United States Steel dipped 0.20%.