Mexico's industrial base is under continuous strain as U.S. tariffs on its steel and aluminum exports cause a sharp decline in shipments.
Last June, the United States raised tariffs on imported steel and aluminum from 25 percent to 50 percent. These hefty duties have stifled Mexico's steel exports and put pressure on key industries across its economy.
Companies in Mexico's metals sector, including the metal distribution firm Suinox Metals, are already struggling to keep afloat.
"Our sales are very low, and we're experiencing delays in raw material deliveries," said Brandon Carmona, a worker at Suinox Metals.
Although the U.S. Supreme Court ruled in a 6-3 vote in February that Trump's tariff policy under the International Emergency Economic Powers Act was illegal, the 50 percent tariff on steel and aluminum products remains in effect.
The measure has thrown Mexico's metals industry into disarray, as steel exports to the U.S. have dropped by nearly 50 percent. With factories shuttering, national production has fallen by a third.
The fallout extends far beyond the metals industry. In Guadalajara, construction projects are becoming increasingly expensive and are taking longer to complete. As steel and aluminum -- essential materials for everything from structural frames to roofing -- become more costly, related sectors are also starting to struggle.
According to industry analysts, the current crisis is eroding Mexico's self-sufficiency in metal production. Taken together, the impact on industries including construction, automotive, and home appliances amounts to roughly 2 percent of Mexico's gross domestic product (GDP).
Mexico's steel, aluminum exports fall as US tariffs bite economy
