US has no plans to lift Mexican steel tariffs

The US has no plans to remove tariffs on Mexican steel and aluminum despite agreement on a trade deal.

US commerce secretary Wilbur Ross told Fox Business there is no timeline for lifting the tariffs despite a deal which will see Canada join a previously announced bilateral trade deal with Mexico.

The US Mexico Canada Agreement (USMCA), expected to come into force in November, replaces Nafta.

But Nafta and the tariffs are separate issues, Ross said. "There are problems specific to steel and aluminum relating to our national defense, and at this point in time these stay the same," he added.

Ross' comments are an apparent change in policy, with the official saying in June that the tariffs on Mexican and Canadian steel would "logically go away" once a revised Nafta was signed.

The US extended 25% steel tariffs and 10% on aluminum to Mexican and Canadian products on June 1 after previous exemption for the Nafta partners expired.

Mexico imposed retaliatory tariffs on US products including steel, apples, pork and whiskey days later.

MEXICAN POSITION

Ross' position contrasted with that of Mexico's foreign minister Luis Videgaray, who told Televisa he is seeking the removal of the tariffs ahead of signing the USMCA.

"I think it would be very positive and a very good sign to be able to resolve this controversy before signing the new trade deal in late November," he said.

Mexican economy minister Ildefonso Guajardo issued a similar message last month, after previously stating talks on the tariffs would only take place once the trade deal was signed.

Mexico's steel chamber Canacero has called on the government to demand the tariffs be lifted prior to signing the deal.

The chamber has also been involved in negotiations on replacing the US tariffs with a quota system.

Quotas imposed on Brazilian steel in place of tariffs were removed in August.