How tariffs have taken their toll on Mexico

Here's what industries have been the worst hit.

The Big News Breakdown. Unpacking this week’s most important news.

The fall was to be expected. Donald Trump slapped Mexican steel and aluminium with a 50% tariff earlier this year. Now, exports to the US have taken a 16.6% hit in the first half of 2025. What should worry observers more is that Mexico’s share of steel imported into the US has also fallen in the same period, from 13.4% in the first half of 2024 to 12.3% in the first half of 2025.

The trend goes against the stated goal of a Mexican committee sent to the US to discuss lifting steel tariffs to further integrate the US and Mexico’s steel production.

It feels like time is really starting to tick for Mexican industry, which is set to be one of the most affected by Trump’s tariffs. And all despite a US-Mexico-Canada Agreement (USMCA) exemption through which 84% of Mexico-US trade remains tariff-free.

However, the cracks are starting to show.