US-Mexico trade deal rumors fail to spark demand amid concerns LA protests could hinder talks
Published by:Rachel McGuire<>
11 Jun 2025 @ 21:41 UTC

Market chatter about a trade agreement between Mexico and the US have done little to spur demand for Mexican steel, sources have reported, but concerns over tensions in Los Angeles could put a hold on a deal to lower the 50% Section 232 tariffs on steel. One reputable news outlet reported on Tuesday June 10 that the US and Mexico were close to a deal that would remove the 50% tariff on steel and aluminium up to a certain volume, setting a new cap on Mexican imports to the region.
So far, it’s just a rumor. It’s just smoke and mirrors, one Mexican steel source told Fastmarkets about the unconfirmed deal between the two countries. But everything points to the deal actually being closed, they added.
Mexico is the third-largest supplier of imported steel products to the US, according to data from the US Department of Commerce. In 2024, purchases from Mexican suppliers accounted for 293,000 tonnes per month, roughly 12.2% of total US imports.
Neither the US nor Mexico have confirmed a trade agreement.
But in a press conference on Wednesday June 11, Mexican economy minister Marcelo Ebrard said we have been gradually moving forward with trade talks. We have a team in Washington, and we have meetings practically every week…there is good communication.
Speculation in the industry has done little to attract demand for Mexican steel.
The market has felt very slow, very weak, [with] little movement, a distributor in the region said. I suppose everyone is waiting to see the resolution of the issue, but there is not much demand, and prices have remained within the same range.
Exports of Mexican steel have fallen substantially in the initial month after the first wave of Section 232 tariffs, which were reimplemented on March 12.
Data from Mexican steel advocacy group Canacero shows that steel exports to the US in April fell by 5.9% from 2024 levels, to 788,000 tonnes. Overall steel exports declined by 3.5% to 1.05 million tonnes year over year.
After the US president’s announcement doubling the Section 232 tariffs, Mexican President Claudia Sheinbaum called the increase unfair on June 4, on the grounds that Mexico imports more steel and aluminium than it exports.
Sheinbaum said Mexico would take countermeasures if a deal was not made.
Some market participants worry that tensions between US and Mexican officials surrounding the protests in Los Angeles, California, could stall trade talks.
The crisis they are having right now with the border in LA does not help, one Mexican trader said. It can complicate the negotiations, [but] I hope not.
Tensions between the US and Mexico are running high after Kristi Noem, US Secretary of Homeland Security, accused Sheinbaum of supporting the ongoing protests in Los Angeles. During a conversation with the press in the Oval Office on June 10, Noem said Sheinbaum encouraged more protests in [Los Angeles], and I condemn her for that. She should not be encouraging violent protests that are going on.
Sweeping protests across the US have occurred in response to actions taken by US Immigration and Customs Enforcement (ICE). US President Donald Trump recently deployed US troops to Los Angeles in response to the anti-ICE demonstrations.
Sheinbaum called Noem’s claims completely false later the same day.
We do not agree with violent actions as a form of protest, the Mexican president said.
Gabriella Brumatti in São Paulo contributed to this story.