Mexico Removes 1,100 Steel Mills From Registry as Canada and Mexico Seek Relief From Trump Tariffs

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North America’s steel trade is facing another major shakeup as Mexico intensifies its crackdown on questionable imports while Canada and Mexico continue pushing for relief from U.S. President Donald Trump’s tariffs. Mexican authorities have removed approximately 1,100 steel mill registrations after discovering that the facilities listed did not actually exist, raising questions about how imported steel has been documented and monitored.

The announcement, made on November 11, 2026, comes as Mexico attempts to demonstrate that foreign steel is not being routed through its territory to avoid American tariffs. Meanwhile, Canadian manufacturers continue facing substantial trade barriers despite the longstanding economic ties connecting all three countries.

With billions of dollars in trade and thousands of manufacturing jobs exposed to tariff pressures, Mexico’s enforcement campaign could become an important development in negotiations over the future of North American trade.

Mexico Removes 1,100 Questionable Steel Mill Registrations

Mexico has taken a significant step toward strengthening oversight of steel imports by cancelling approximately 1,100 mill registrations from its approved catalogue. Deputy Economy Minister Luis Rosendo Gutiérrez disclosed the findings on November 11, explaining that authorities had discovered numerous registered facilities that did not actually exist. Many of the questionable entries were associated with Asian countries, where steel production plays an important role in global manufacturing supply chains. The announcement represents a substantial administrative crackdown on potential weaknesses in the country’s import verification system.

Importantly, the decision does not mean Mexico physically closed 1,100 operating factories. Instead, authorities removed registrations associated with nonexistent mills, making it harder for questionable shipments to rely on those identities. Mexico already requires documentation for certain steel imports, including certificates identifying producers and material characteristics. By tightening these requirements, the government hopes to improve the reliability of import records, protect legitimate suppliers, and demonstrate to Washington that its trade preferences are not being exploited through inaccurate documentation.

Why Steel Origins Have Become a Major Trade Enforcement Issue

Steel frequently crosses several international borders before becoming part of a vehicle, appliance, or building. That makes the distinction between where a shipment originates and where its steel was actually produced particularly important. Mexico’s steel import procedures include automatic import notices, a catalogue of producing mills, and supporting mill or quality certificates. When a manufacturer cannot be verified, the paperwork can undermine confidence in the declared source of the shipment. Removing inaccurate registrations helps close that gap, although it does not establish that every shipment connected to them was fraudulent.

Washington has been concerned about steel origins for years. In July 2024, U.S. authorities introduced additional duties on certain Mexican steel products melted and poured outside Canada, Mexico, and the United States. Customs officials also required mill certificates to verify production details. These requirements highlighted a challenge facing manufacturers: steel can be rolled, coated, or finished in one country after being produced elsewhere. Mexico’s latest enforcement campaign builds on these concerns while providing additional evidence of cooperation during tariff negotiations.

Steel Imports From Vietnam Fall by as Much as 80%

One of the most striking developments reported by Mexican officials involves Vietnam, a significant player in the international steel industry. Gutiérrez said tighter import controls helped reduce Mexican steel imports from Vietnam by approximately 80% in some recent months. The reduction suggests that Mexico’s verification procedures are affecting import flows, particularly those associated with foreign suppliers facing closer examination. However, the figure refers to certain months rather than an established annual decline, and it does not automatically mean that all previously imported Vietnamese steel was improperly documented.

Vietnam’s importance to the industry makes the change particularly noteworthy. According to the World Steel Association, Vietnam produced approximately 24.7 million tonnes of crude steel in 2025, placing it among the world’s largest producers. Legitimate Vietnamese steel exports and shipments supported by questionable documentation remain separate issues. Mexico’s challenge is ensuring that enforcement measures effectively identify suspicious transactions without unnecessarily restricting legitimate international commerce. For importers and manufacturers, the changes also reinforce the growing importance of maintaining accurate supplier information and reliable production records.

Mexico Reports a 30% Decline in Steel and Aluminum Imports From Other Countries

Mexico’s enforcement campaign extends beyond removing questionable registrations. Gutiérrez reported that the country had reduced steel and aluminum imports from third countries, including China, South Korea, and India, by approximately 30%. The reduction represented roughly 13 billion Mexican pesos, equivalent to about US$699 million at the exchange rate cited in the November 11 report. These figures offer a clearer picture of the scale of Mexico’s changing import patterns. However, the reported decline should not be interpreted as evidence that every shipment previously entering the country involved tariff avoidance or inaccurate documentation.

The countries mentioned are major participants in global steel production. In 2025, China produced approximately 960.8 million tonnes of crude steel, while India produced about 164.9 million tonnes and South Korea approximately 62.2 million tonnes. Their substantial manufacturing capacity makes them important suppliers throughout international markets. Mexico’s restrictions may create additional opportunities for domestic steel producers, but companies relying on foreign inputs could also face more demanding verification procedures. For trade negotiators, the reported import reductions offer measurable evidence that Mexico is responding to American concerns about supply-chain transparency.

Trump’s Section 232 Tariffs Remain the Central Trade Obstacle

Despite Mexico’s efforts to strengthen enforcement, substantial American tariffs continue to affect North American manufacturers. The Trump administration has used Section 232 of the Trade Expansion Act of 1962, which addresses imports considered a potential threat to national security, to impose duties on steel, aluminum, and other industrial products. Under the U.S. tariff framework revised during 2026, covered primary steel and aluminum products generally face duties of 50%, while certain derivative products face different rates, including 25% or 15%. These charges can significantly influence the prices American buyers pay for imported industrial materials.

The automotive industry faces additional complications. U.S. Section 232 tariffs of 25% apply to certain imported vehicles, although qualifying vehicles receive relief for their U.S.-origin content and qualifying parts have separate protections. Steel does not receive a blanket exemption simply because it comes from a CUSMA partner. Consequently, Mexican officials are trying to demonstrate that improved customs enforcement should justify tariff concessions. Washington’s stated objective, meanwhile, remains protecting domestic production and national security. Those competing priorities make negotiations difficult, particularly for manufacturers whose supply chains were designed around relatively unrestricted regional trade.

Mexico Prioritizes Tariff Relief Before Broader CUSMA Negotiations

Mexico’s government is concentrating on obtaining immediate concessions from Washington rather than attempting to resolve every disagreement surrounding the Canada-United States-Mexico Agreement. Gutiérrez said reducing the effects of Section 232 tariffs on steel, aluminum, and automobiles was a priority. He also estimated that approximately 80% of Mexican exports to the United States already enter tariff-free. That distinction is important because the remaining restrictions can be concentrated in industries that employ large numbers of workers and support extensive manufacturing supply chains.

Mexico’s Economy Minister, Marcelo Ebrard, has presented proposals to American officials aimed at easing trade tensions. According to Gutiérrez, Washington has responded positively, with Mexico hoping for progress before the end of 2026. However, a favourable reception does not constitute a finalized agreement. Discussions have already involved senior officials, including U.S. Trade Representative Jamieson Greer and Mexican President Claudia Sheinbaum. Their July 2026 meeting identified steel, aluminum, and automobiles among the major negotiating issues. Mexico’s latest enforcement measures could strengthen its argument that improved trade compliance deserves consideration alongside tariff reductions.

Canada Pursues Separate Negotiations to Reduce American Tariffs

Canada is facing many of the same tariff pressures, although Ottawa’s negotiations with Washington are proceeding separately from Mexico’s efforts. On October 26, Reuters reported that American and Canadian officials were discussing potential relief from Section 232 tariffs affecting Canadian steel and automobiles. The discussions followed the breakdown of broader negotiations in August, which left major disagreements unresolved. U.S. Commerce Secretary Howard Lutnick and Canada’s Minister responsible for Canada-U.S. trade, Dominic LeBlanc, were identified as important participants in the renewed discussions.

Prime Minister Mark Carney has maintained that any trade agreement must protect Canadian interests rather than simply secure concessions at any cost. Speaking on November 10, Carney indicated that the Trump administration would remain Canada’s principal negotiating counterpart despite changes in the American political landscape after the November 3 midterm elections. He also acknowledged that difficult issues remained unresolved. The situation highlights a common challenge for Canada and Mexico: both countries want predictable access to the American market, but neither can independently determine the tariff policies imposed by Washington.

Canadian Steelworkers Face Mounting Pressure as Exports Decline

The consequences of America’s steel tariffs are already visible across Canada’s manufacturing economy. In an April 2026 assessment, the Bank of Canada reported that Canadian steel exports to the United States had fallen by approximately half following the introduction of steep tariffs. Production and employment had also declined, although less dramatically than exports, partly because government support and domestic purchasing measures helped sustain activity. For workers in steel-producing communities, the concern extends beyond immediate production levels to the possibility of weaker demand, reduced investment, and fewer opportunities as existing contracts expire.

Canada’s steel industry supports more than 23,000 direct jobs and is closely connected to the broader fabricated metals sector, which employs approximately 172,000 people. Recognizing these pressures, Ottawa and Ontario announced a major industrial support package on October 21. A new Joint Steel Action Fund includes five-year commitments of C$3.55 billion from the federal government and C$1.67 billion from Ontario. The initiative aims to strengthen domestic production, develop overseas markets, and support emerging industries. Nevertheless, financial assistance cannot completely replace the commercial opportunities lost when American customers face higher costs for Canadian steel.

Ottawa Introduces Additional Measures to Protect Canadian Manufacturers

Canada has responded to Washington’s tariff measures through a combination of retaliation, financial assistance, and targeted import-duty relief. On September 8, 2026, Ottawa implemented additional counter-tariffs of 15%, 25%, and 50% on selected American products. The measures covered approximately C$27.6 billion in U.S. imports and targeted sectors affected by American trade restrictions, including steel, agricultural equipment, dairy, and electronics. Although these countermeasures were intended to increase pressure on Washington, they also created potential cost challenges for Canadian businesses that depend on American components and materials.

On November 9, Finance Minister François-Philippe Champagne announced adjustments designed to ease some of those challenges. Canada extended relief from its own tariffs on eligible U.S. imports until June 30, 2028, while expanding certain exemptions and providing targeted assistance to companies facing exceptional circumstances. The government also plans to withdraw selected exemptions where Canadian alternatives are available. This approach reflects a difficult balancing act: supporting domestic producers while preventing retaliatory tariffs from unnecessarily increasing costs for Canadian manufacturers, public institutions, and other eligible importers.

Economic Research Raises Questions About the Scale of Steel Transshipment

The Mexican government’s crackdown has also renewed debate over how frequently foreign goods are improperly routed through North America to avoid tariffs. Although Washington has expressed concern about Chinese products entering the American market through third countries, economic researchers caution against treating every multinational supply chain as evidence of wrongdoing. An October 2026 analysis by the Center for Strategic and International Studies found that Mexico had not experienced an overall increase in the overlap between Chinese import categories and goods exported to the United States. The findings challenge claims that simple transshipment explains most of Mexico’s growing role in regional trade.

Research published by the U.S. Federal Reserve in June 2026 offered similar context. Examining trade changes associated with the 2018–2019 U.S.-China tariffs, researchers estimated that direct transshipment accounted for less than one percentage point of Mexico’s increased exports to the United States. Actual manufacturing activity in Mexico played a much larger role. These conclusions do not invalidate Mexico’s discovery of nonexistent steel mills, but they highlight an important distinction between inaccurate documentation and legitimate production using imported materials. Effective enforcement requires identifying actual violations without treating ordinary international manufacturing as inherently suspicious.

The Future of North American Trade Remains Uncertain

Mexico’s registry cleanup comes at a particularly sensitive moment for the future of North America’s trade relationship. On July 1, 2026, U.S. Trade Representative Jamieson Greer announced that Washington would not renew CUSMA in its existing form during the scheduled joint review. However, the agreement remains in force while negotiations continue. That distinction matters because businesses can still operate under the existing trade framework, even as uncertainty grows about future tariff exemptions, manufacturing requirements, and rules governing the origin of goods.

For Mexico, the next major test will be whether stronger import enforcement translates into meaningful reductions in American tariffs. For Canada, the priority remains securing improved access for steel, aluminum, and automotive manufacturers while protecting other national interests. Neither country had announced a comprehensive resolution as of November 12. Ultimately, the consequences will be measured not only in trade negotiations but also in factory investment decisions, production contracts, and employment opportunities. Mexico’s removal of 1,100 questionable mill registrations demonstrates a significant enforcement effort, but the larger challenge of restoring predictable North American trade remains unresolved.

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