MEXICO CITY – Mexican President Claudia Sheinbaum announced on April 29 that all federal infrastructure and public works projects must use steel produced within Mexico, marking one of her administration’s most direct moves to counter the country’s deep economic dependence on the United States. The rule comes after failed talks with Washington to lift 50-percent U.S. steel and aluminum tariffs imposed by President Donald Trump’s administration, which Mexico has repeatedly called “unfair” given the U.S. trade surplus in these metals.
“The commitment we are making here is that the government’s purchases will be steel produced in Mexico,” Sheinbaum said during her daily morning briefing, framing the policy as a way to strengthen national industry while responding to protectionist U.S. trade actions. Under Trump’s sweeping tariff regime, more than half of Mexico’s steel and automotive exports, sectors that ship over 50 percent of their output to the U.S., face steep duties, complicating Mexico’s position as the destination of roughly 80 percent of its exports.
The new preferential procurement rule is part of a broader push during the ongoing review of the U.S.–Mexico–Canada Agreement (USMCA), where Mexico has sought exemptions or reduced tariffs on specific volumes of steel and aluminum, with any excess imports still subject to the full 50-percent levy. However, U.S. Trade Representative Jamieson Greer told Mexican auto and steel leaders last week that the USMCA re‑evaluation is not expected to remove these sectoral tariffs, signaling that Mexico must rely more on internal markets and supply‑chain adjustments.
By tying federal spending to domestic steel suppliers, Sheinbaum aims to stimulate local production and reduce vulnerability to U.S. trade policy swings, even as her government continues to lobby for a more cooperative trade framework with Washington.