This article is written by Austin Garcia
The Stop Mexico’s Steel Surge Act, introduced in the US Senate on March 12, aims to reinstate a 25% tariff on Mexican steel imports for at least one year. The President has the authority to impose quotas or tariff-rate quotas on specific goods where major surges have occurred, under Section 232 of the Trade Expansion Act of 1962.
The Trade Expansion Act of 1962 was a US legislation introduced in said year to promote the country’s welfare, foreign policy, and security through international trade agreements. It granted the President unprecedented authority to negotiate tariff reductions of up to 80%, paving the way for the Kennedy Round of General Agreement on Tariffs and Trade (GATT) negotiations. Section 232 of the Act allowed the President to impose tariffs based on a recommendation by the U.S. Secretary of Commerce if an article is being imported into the U.S. in quantities or under circumstances that threaten or impair national security. This section was only used in 1979 and 1982 and was invoked by President Trump in 2018.
Before tariffs can be enacted, an investigation must be conducted by the Secretary of Commerce. The tariffs can only be lifted once Mexico has adopted policies in compliance with the 2019 agreement, which aims to eliminate all tariffs imposed under Section 232 on imports of aluminum and steel products from Mexico. The bill has bipartisan support and is sponsored by over 10 Senators.
Despite the prevailing view that the United States may be at a disadvantage in this dispute, our experts at TradeFlex Group identify potential opportunities that could be capitalized upon through a solution rooted in Mexican manufacturing. TradeFlex Group is poised to assist you in navigating the potential impacts of retaliatory tariffs.
Here at TradeFlex we provide business model analysis, manufacturing management strategies, duty tariff optimization , compliance management, regulatory consultation, duty reduction programs, supply chain and tariff engineering, and cross-border solutions. With over 30 years of expertise, we help businesses land softly in Mexico, ensuring efficient, compliant, and cost-effective cross-border operations. Come work with us today at https://trade-flex.com.
