CPA Chairman: Trump Must Tackle Mexico’s Steel Surge

Donald Trump has consistently spotlighted the dangers of unchecked immigration at America’s southern border. He’s also called out China’s predatory behavior against U.S. manufacturers. However, there’s a glaring overlap in these two areas — and it’s fast becoming a significant threat to American industry. 

Mexico has been flooding the United States with underpriced steel — in clear violation of a 2019 agreement with Washington. The Biden administration did not address the problem; now, the coming Trump administration must act.

In 2019, Mexico pledged to limit its steel exports to the United States in exchange for the Trump administration lifting tariffs on Mexican steel. Since then, Mexico has blatantly violated the agreement.

Mexican steel shipments to the United States have skyrocketed — reaching an astounding 472 percent above the agreed-upon levels set in 2019. This year, Mexican steel imports to the United States are on track to get 700 percent above these baseline levels. As a result, Mexico now accounts for 87 percent of all U.S. steel conduit imports, undermining American industry and costing American jobs.

Mexico may claim to be an ally of the United States, but its actions tell a different story. Mexico needs to pay attention to its trade commitments. It has also become a key assembly and transshipment hub for Chinese parts and components bound for the United States. That has allowed China to bypass many tariffs imposed during the Trump administration.

This isn’t the behavior of a reliable ally. Instead, Mexico is acting more like a trade adversary than a partner. The United States should reconsider Mexico’s preferential treatment under the United States-Mexico-Canada Agreement. An “ally” that undermines American industry and ignores trade agreements doesn’t deserve the benefits of open trade with the United States.

Mexico’s annual trade surplus with the United States reached a record $152 billion in 2023, making it the third-largest trade surplus with the United States, behind only China and the European Union. Thanks to its predatory trade against the United States, Mexico’s steel industry is set to expand by as much as 38 percent in the next few years.

Instead of taking decisive action, President Biden allowed negotiations with the government of former president Andrés Manuel López Obrador to drag on. At the same time, Mexico’s steel producers continued their assault on the U.S. steel market. The result? America’s steel companies are halting planned investments, and workers are losing jobs.

Consider Zekelman Industries, the largest independent steel pipe and tube manufacturer in North America. Zekelman has been forced to close its Long Beach, California, plant — and lay off 150 workers — because of Mexico’s steel dumping. The company’s planned $400 million expansion of its Illinois facility — and 250 workers — is on hold.

This is a crisis for America’s steel producers and for all U.S. industries that rely on fair trade. The Trump administration must act decisively. The first step is clear: reimpose tariffs on Mexican steel to stop the flood and hold Mexico accountable. If Mexico refuses to honor its commitments, the next step should be to remove Mexico from the United States-Mexico-Canada Agreement.

The Mexican steel surge has grown so serious that a bipartisan group of 10 U.S. senators has introduced legislation to reimpose tariffs on Mexico. Considering this congressional support for confronting Mexico’s violations, the Trump administration should act swiftly to reimpose tariffs and take steps — to ensure that America’s trade partners honor their commitments.

Mexico’s actions are not those of an ally. Trump must take bold action to protect American workers and industry and send a clear message: The United States will not tolerate trade cheaters — whether in Beijing or Mexico City.