US pushes to close steel import loopholes in USMCA review

Combatting cheap steel imports entering the US through Canada and Mexico, and encouraging the use of North American products are among the priorities for the US as the review of the US-Mexico-Canada Agreement (USMCA) approaches, a US trade official said May 12.

Deputy US Trade Representative Jeffrey Goettman said that the goals for the US include establishing unified tariff borders with Canada and Mexico, increasing North American and US content in products and improving rules of origin.

The US is more frequently seeing steel derivative goods that have used cheaper steel products enter the country, according to Goettman.

"As we look at USMCA in particular, we're trying to shut down, what I would call, the side door of things coming into the United States through Mexico and Canada, using inputs that are much cheaper than the inputs that you can get directly into the United States," he said at the American Iron and Steel Institute's general meeting.

Goettman said that while the US has opportunities to strengthen the original USMCA agreement, the decision on whether to renew the agreement is up to US President Donald Trump.

"Should the president decide to extend, we think that the USMCA 1.0 provides a good foundation across many different matters," Goettman said.

In June 2025, Trump imposed a global 50% steel tariff as part of his economic agenda to boost domestic manufacturing amid an oversupply of cheap imports in the global market.

The move has successfully dissuaded US buyers from importing steel: The US imported a total of 5.1 million short tons of steel in the first quarter of 2026, down 34.8% from 7.8 million st of steel in the first quarter of 2025, according to US Census data.

Canada and Mexico have taken steps to combat cheap imports into their respective markets as well after the US imposed its steel tariff. Government officials from both countries have said that relief from the 50% steel tariff is a top priority for them during USMCA talks.

Goettman observed that the US is encountering separate issues with Canada and Mexico.

"We're pursuing negotiations with Mexico in a much more aggressive form," he said. "I think our interests seem to align more currently with regard to manufacturing in particular but just sharing the same road view on the dangers of Asian imports and what that's doing to their economy and how it's hurting our economy as well."

Meanwhile, Canada's approach has been different, Goettman said, adding that Canada was among the countries that responded against the US after "Liberation Day," when US President Donald Trump imposed tariffs on dozens of US trade partners.

"We have open dialogue with Canada, we're continually optimistic that we're going to be able to find those shared interests and move forward together," he said.