Mexican steel industry teeters on brink of collapse under US tariffs.
The imposition of steep tariffs by US President Donald Trump has brought Mexico's steel industry to a standstill, with nearly half of its machine capacity lying idle due to reduced demand from American buyers. The impact is being felt across the sector, from small workshops like Maquinados Bera in Nuevo Leon to major companies like Nemak and Ternium.
At Maquinados Bera, the 25 percent tariff on steel imports imposed by Trump in March has been a disaster for the business, with production capacity reduced by over 75%. "It affected us greatly," said chief operations officer Jose David Garcia Torres. "Many companies decided to halt production, and our services were no longer needed. We were stopped for months, literally doing nothing."
The US tariffs have had a devastating impact on Mexico's steel industry, with exports to the US falling by 29 percent in value in the first seven months of this year. The decline has been attributed to the imposition of higher prices, which has made Mexican steel less competitive in the global market.
However, despite the challenges, some small businesses are finding ways to adapt and thrive in the new environment. For example, metalworks workshop owner Jorge Rodriguez is seeing an increase in orders for small, local products that were previously overlooked by larger companies. "Purchase orders have decreased significantly," he said. "The companies I work for export their products. Their exports almost completely stopped, and I no longer manufacture anything for them." However, with the decline of industrial demand, Rodriguez's workshop is now seeing a surge in small orders from local customers.
Experts say that the US tariffs are having far-reaching consequences, not just for the steel industry but also for other sectors such as the automotive and electronics industries. "It's not just the steel industry but also the automotive industry, the production of electronic goods, machinery, everything that includes some steel or aluminium," said economics professor Belem Iliana Vasquez Galan.
The Mexican government has responded by promoting its "Made in Nuevo Leon" initiative, which aims to strengthen local supply chains and increase global competitiveness. The program offers tax incentives for companies that use local suppliers and loans for small and medium-sized businesses to invest in equipment and integrate into global value chains.
However, despite these efforts, Vasquez warned that integrating Mexican small and medium-sized businesses into global supply chains remains a significant challenge. "Integration generally occurs solely for employment," she said. "In other words, the only benefit foreign companies bring is job creation."
As the US-Mexico trade relationship continues to evolve, one thing is clear: Mexico's steel industry will need to find a way to adapt and thrive in order to maintain its competitiveness in the global market.
The imposition of steep tariffs by US President Donald Trump has brought Mexico's steel industry to a standstill, with nearly half of its machine capacity lying idle due to reduced demand from American buyers. The impact is being felt across the sector, from small workshops like Maquinados Bera in Nuevo Leon to major companies like Nemak and Ternium.
At Maquinados Bera, the 25 percent tariff on steel imports imposed by Trump in March has been a disaster for the business, with production capacity reduced by over 75%. "It affected us greatly," said chief operations officer Jose David Garcia Torres. "Many companies decided to halt production, and our services were no longer needed. We were stopped for months, literally doing nothing."
The US tariffs have had a devastating impact on Mexico's steel industry, with exports to the US falling by 29 percent in value in the first seven months of this year. The decline has been attributed to the imposition of higher prices, which has made Mexican steel less competitive in the global market.
However, despite the challenges, some small businesses are finding ways to adapt and thrive in the new environment. For example, metalworks workshop owner Jorge Rodriguez is seeing an increase in orders for small, local products that were previously overlooked by larger companies. "Purchase orders have decreased significantly," he said. "The companies I work for export their products. Their exports almost completely stopped, and I no longer manufacture anything for them." However, with the decline of industrial demand, Rodriguez's workshop is now seeing a surge in small orders from local customers.
Experts say that the US tariffs are having far-reaching consequences, not just for the steel industry but also for other sectors such as the automotive and electronics industries. "It's not just the steel industry but also the automotive industry, the production of electronic goods, machinery, everything that includes some steel or aluminium," said economics professor Belem Iliana Vasquez Galan.
The Mexican government has responded by promoting its "Made in Nuevo Leon" initiative, which aims to strengthen local supply chains and increase global competitiveness. The program offers tax incentives for companies that use local suppliers and loans for small and medium-sized businesses to invest in equipment and integrate into global value chains.
However, despite these efforts, Vasquez warned that integrating Mexican small and medium-sized businesses into global supply chains remains a significant challenge. "Integration generally occurs solely for employment," she said. "In other words, the only benefit foreign companies bring is job creation."
As the US-Mexico trade relationship continues to evolve, one thing is clear: Mexico's steel industry will need to find a way to adapt and thrive in order to maintain its competitiveness in the global market.
this whole thing with the tariffs has really messed up the Mexican steel industry. The fact that small workshops like Maquinados Bera are being forced to shut down for months is just devastating 
. And I'm surprised that experts like Belem Iliana Vasquez Galan aren't saying more about how this could have a ripple effect on other industries too... it's all so interconnected 
Interesting
They're finding ways to diversify and focus on local orders, which can lead to some amazing opportunities for innovation and growth. And let's not forget about the "Made in Nuevo Leon" initiative - that's a great way to boost local economies and create new jobs. I mean, sure, it's tough for the steel industry as a whole, but sometimes change can be a good thing...as long as we adapt and thrive, right? 
like whats the point? didnt he know this would hurt the steel industry soooo badly 
my cousin works at a workshop in nuevo leon and his boss had to lay off half the staff 
electronics, automotive... it all relies on steel or aluminium, right? 
so basically, trump's tariffs r having a ripple effect everywhere 
. I mean, who wants to pay 25% more for their steel imports? 
But on the other hand, it's also creating opportunities for small businesses and local producers like Jorge's metalworks workshop 
. However, experts are right to highlight that this trade war has far-reaching consequences, from the automotive industry to electronics and machinery 
. It's time for Mexico to think about its own supply chain strategy and competitiveness 
... there are some positives coming out of this too. Small businesses that were being left behind by big companies are actually seeing an increase in orders for local products 
... it's like the US tariffs created a new opportunity for them to thrive.
... they're offering tax incentives and loans to small businesses so they can invest in equipment and globalize. It's not going to be easy, though, integrating into global supply chains... it takes more than just money 
... Mexico's steel industry needs to find a way to compete globally without relying on US buyers. And that's a tough one 
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. Small businesses like Jorge's metalworks workshop finding ways to adapt to local orders is actually a good sign, though 
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. I mean, come on! You can't just slap a label on something and expect it to be all better 
. The fact is, Mexico's steel industry is struggling because of these tariffs, and the government needs to figure out a way to help those little guys out 
.
. The US is basically telling its Mexican friends that they can't compete with their fancy American steel 
. It's like we're all stuck in some kind of crazy economic loop 
. Mexico's steel industry can't keep limping along forever 
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and it's not just steel, other industries like autos & electronics are also feeling the pinch 
. But what really needs to happen is for both countries to find a way to work together, supporting each other's industries and economies in a more balanced way 
. but at the same time, some ppl r finding ways to adapt & thrive in this new environment. like jorge rodriguez's metalworks workshop - his business r getting orders for smaller, local products that were previously overlooked by bigger companies 
. it's gonna be super challenging for mexico to find a way 2 maintain its competitiveness in the global market 
. i think the mexican gov is on the right track w/ initiatives like "made in nuevo leon" tho 
Jorge Rodriguez's workshop is a great example of that 
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