Mexico’s import of aluminium from the US outpaced exports in 2017

Currently, Mexico is hitting the headlines due to the US tariffs on imported aluminium and steel and NAFTA negotiations. The country hit back fast on U.S. tariffs on steel and aluminium on Thursday, targeting products from congressional districts.  The tit-for-tat measures would complicate the NAFTA renegotiations that underpin trade between the neighbours.

While the USA is holding on to its 10 per cent import tariff on aluminium from all countries, every aluminium exporter to the US is fighting for exemptions from the tariff. When we look at our trade data, we can see that, Mexico exported a total of about 26,142 tonnes of aluminium and about 11,864 tonnes to the US in 2016. The amount dropped to a meagre 8833 tonnes in 2017 with about   232 tonnes exported to the US mostly due to the controversies related to Chinese aluminium being transported to the US via Mexico.  In 2018, the total export volume is expected to stand at 12,108 tonnes. Export to the US will be substantially dropping if tariffs come into practice.

Mexico buys more steel and aluminium from the United States than it sells. It is the top buyer of U.S. aluminium and the second-biggest buyer of U.S. steel, according to a ministry statement from Mexico. Mexico imported 878,989 tonnes of aluminium in 2017. Out of that USA exported about 189,711 tonnes.  We can see that the import volume is much higher than the export volume in 2017.

While import tariffs will affect costs for the US domestic aluminium product manufacturers, the countermeasures will hit U.S. hot and cold rolled steel, plated steel and tubes, the Mexican ministry said.