US, Mexico near deal to cut steel duties, cap imports

The US and Mexico are closing in on a deal that would remove President Donald Trump’s 50% tariffs on steel imports up to a certain volume, according to people familiar with the matter, a revamp of a similar deal between the trade partners during his first term, Report informs via Bloomberg.

An industry source familiar with the talks said that a likely outcome would include a quota arrangement, under which a specified volume from Mexico could enter duty free or at a reduced rate and any imports above that level would be charged the full 50% tariff.

It was unclear whether the deal would eliminate tariffs altogether for in-quota steel import volumes from Mexico or reduce them to a lower level, the source said.

The specific volume level of the quota also was not yet determined.

Bloomberg News first noted the negotiations over tariff reductions for Mexican steel, quoting people familiar with the matter as saying that the two sides were close to a deal. The terms of the agreement had not been finalized but would allow US companies to import Mexican steel tariff-free as long as total shipments are kept below a level based on historical trade volumes.