US and Mexico are nearing a deal that would remove U.S. President Donald Trump's 50% tariff on steel imports up to a certain amount, according to people familiar with the matter. This would be a modification of a similar agreement between the two trading partners during Trump's first term. Trump has not been directly involved in the negotiations and would be required to ratify any agreement. U.S. Commerce Secretary Howard Lutnick is leading the talks, according to the people, who asked not to be identified because the discussions remain confidential. The people said the agreement has not yet been finalized. Under its current terms, the deal would allow U.S. buyers to import steel from Mexico duty-free, as long as total shipments remain below a level based on historical trade volumes, the people said. They added that the new cap would be higher than what was allowed under a similar agreement struck during Trump's first term, which was not a fixed number but was designed to "prevent sudden inflows." The White House did not immediately respond to a request for comment. The office of Mexican President Claudia Sheinbaum also did not respond to a similar request. Shares of U.S. steel companies fell in late trading after the Bloomberg report. Cleveland-Cliffs shares fell more than 7%, and Nucor Corp. shares fell more than 4%. Meanwhile, the Mexican peso pared losses. Mexican Economy Minister Marcelo Ebrard said he told U.S. officials during meetings last week that imposing steel tariffs was "not justified" in Mexico's case because the United States exports more to Mexico than the country sends to the United States. On Friday, Ebrard posted a photo of himself shaking hands with a smiling Lutnick in Washington. "We are waiting for their response, because we gave them the details of Mexico's position on Friday, and we are right," Ebrard told reporters Tuesday. "So we will wait for their response, which will probably be this week."
