Background on the Situation
Mexico is grappling with a 50% tariff under cláusula 232, which has directly affected the aluminum industry. Eugenio Clariond, president of the Mexican Institute of Aluminum (IMEDAL), has highlighted that this tariff has impacted Mexican aluminum exporters, with varying effects across different products and subsectors.
Key Players and Their Roles
Eugenio Clariond, also the CEO of Grupo Cuprum, will meet with Marcelo Ebrard, Mexico’s Secretary of Economy, and the President of the Aluminum Association in the United States to form a beneficial alliance for the aluminum sector across North America.
Impact on Mexican Aluminum Industry
Clariond mentioned that the tariff has affected their exports, especially those with higher value-added products. However, complex items like aluminum ladders face significant challenges since they are not produced in the United States, and Mexico is a primary competitor. In this case, North American consumers absorb the impact.
Less value-added products like aluminum profiles are also affected, with a 50% tariff potentially excluding them from the market. The impact varies by case and subsector, but overall, there is a noticeable effect.
While Clariond did not specify the extent of workforce reduction or production decline, he noted adjustments in work shifts and administrative areas, incorporating new technologies like AI for increased efficiency.
Expected Outcomes
The most optimistic scenario would be Mexico’s exclusion from the aluminum tariff, as it occurred during Donald Trump’s first presidential term in 2019. However, Clariond acknowledges this as a challenging goal, hoping for a reduction from 50% to 10-15%. He emphasizes that the United States relies on Mexico as its primary consumer, so strengthening regional production is crucial.
T-MEC as an Opportunity
Clariond believes that the United States’ security argument for aluminum tariffs is unfounded. He advocates for a targeted approach to protect against China while bolstering regional production capabilities.
The T-MEC review presents an opportunity to revise these mechanisms and establish clearer rules that bolster Mexico, the United States, and Canada’s aluminum industries. Clariond also urges the Mexican government to prioritize national suppliers in infrastructure and public works projects while working to curb unfair imports from Asia, such as in the recent Tren Saltillo-Monterrey-Nuevo Laredo project.
Call for Tariff Elimination
After launching the ALUMEXICO Summit & Expo 2025, Nuevo León Governor Samuel Alejandro García Sepúlveda announced plans to collaborate with the federal government to persuade the United States to eliminate cláusula 232 tariffs affecting steel and aluminum industries.
García Sepúlveda aims to work with federal agencies, ALUMEXICO, CAINTRA, and industry chambers to propose long-term solutions. Currently, 95% of Nuevo León’s exporters utilize the T-MEC, compared to the national average of 85%. Despite these tariffs under cláusula 232’s exception, the state aims to support resilient companies like Nemak, Ternium, and Cuprum.
Nuevo León is committed to regional collaboration, working alongside Canadian and American partners to convince the U.S. government to remove this tariff, ensuring steel, aluminum, and other specific items remain arbitrage-free.
Key Questions and Answers
- What is the main issue? Mexico faces a 50% tariff under cláusula 232, affecting its aluminum industry.
- Who is involved in addressing the issue? Eugenio Clariond (IMEDAL), Marcelo Ebrard (Mexico’s Secretary of Economy), and the Aluminum Association President in the United States are collaborating to form a beneficial alliance.
- How has the tariff impacted Mexican aluminum exporters? The tariff has affected both high and low value-added products, with complex items facing greater challenges due to limited U.S. production.
- What are the expected outcomes? The optimistic scenario involves Mexico’s exclusion from aluminum tariffs, while a more realistic goal is reducing the current 50% tariff to 10-15%.
- What role does T-MEC play? The T-MEC review offers an opportunity to revise tariff mechanisms and establish clearer rules that strengthen Mexico, the United States, and Canada’s aluminum industries.
- What is the call for action? Nuevo León’s Governor, Samuel Alejandro García Sepúlveda, aims to persuade the U.S. government to eliminate cláusula 232 tariffs affecting steel and aluminum industries through regional collaboration.
