Mexico presses US on auto, steel tariffs in meeting with Lutnick

Mexico's Economy Minister Marcelo Ebrard met with U.S. Commerce Secretary Howard Lutnick to discuss existing U.S. tariffs on automobiles and steel.

During the meeting, Lutnick stated that the Trump administration is developing a "targeted" and "thoughtful" tariff policy for semiconductors. He reiterated that companies choosing to manufacture their products within the United States would not be subject to these duties. This approach aims to incentivize domestic production by offering tariff relief to firms that invest in U.S. chip manufacturing facilities.

Politico reported that the administration is considering new chip tariffs, a move that has raised concerns among tech companies about its potential impact on U.S. dominance in artificial intelligence. The proposed policy could expand the range of affected tech products beyond semiconductors to include items like laptops and servers. Lutnick indicated that the semiconductor tariff strategy would likely follow a similar model to the administration's pharmaceutical import policy, which provided tariff relief to companies that established innovative pharmaceutical production in America.

South Korean chipmakers Samsung Electronics and SK hynix are closely observing these developments due to their potential business implications in the U.S. The Trump administration's broader strategy involves using tariffs to bolster domestic manufacturing, reduce the trade deficit, and attract foreign investment.