Mexican aluminum industry opposes US tariffs, cites threat to over 1mn jobs

Mexico's national aluminum industry chamber (Canalum) warned that additional tariffs announced last month by the US government will affect the domestic aluminum sector, threatening the jobs of over 100,000 direct workers and more than a million indirect ones.

It further stated that the measure would have "significant consequences" for the stability of the industry and the country itself, given that the aluminum sector is key to the Mexican economy. Shipments to the US account for nearly 80% of total industry exports, exceeding US$2bn in 2024.

"Canalum expresses its opposition to the adjustment made to the presidential proclamation issued by the United States government on February 11, 2025, which establishes additional tariff measures on imports of aluminum and its derivatives," the chamber stated in a release.

Trump announced a 25% tariff on steel and aluminum imported by the US, to take effect on March 12. The US government justified the measure under Section 232 of the Trade Expansion Act of 1962, which allows for import adjustments on national security grounds.

The tariff will apply universally, including to countries with which the US has free trade agreements, such as Mexico and Canada.

Canalum acknowledged the Mexican government's swift response in calling for trade dialogue with the US, scheduled for this Thursday. The talks are aimed at analyzing the situation and presenting verifiable data.

"We support efforts to defend fair trade and reaffirm our willingness to collaborate in the analysis and presentation of information that accurately reflects the reality of bilateral trade, emphasizing that the patterns mentioned in the proclamation lack support in official data, including those from US sources," Canalum added.

The chamber also underscored that Mexico does not produce aluminum, as it lacks bauxite mines, unlike other countries mentioned in the proclamation. 

"Therefore, its duty-free importation is essential for the development of national industry. Moreover, Mexico has imposed tariffs on products and articles of Chinese origin to regulate trade and ensure fair conditions in the sector."

Recently, Mexican public policy research center IMCO warned that Trump's aluminum and steel tariffs will impact 4.7% of Mexico's exports to the US, including auto parts, household appliances and electronic products.

IMCO analyzed the potential effects of these tariffs on the Mexican economy and determined that the impact on sales of these products to the US will amount to more than 1.5% of Mexico's GDP in 2024.

It further estimated that "In 2024, these 68 newly affected tariff classifications alone accounted for a value exceeding US$20bn, equivalent to 3.91% of Mexico's total exports to the United States," and that "imposing tariffs on these industries would complicate their operation and make them less efficient."

According to the study, the total value of Mexican exports of aluminum-containing products subject to the new tariffs would exceed US$22bn.