Mexico's Secretary of Economy, Marcelo Ebrard, has pushed for an agreement to prioritize domestically produced steel in government public works projects.

This move aims to strengthen the national steel industry and reduce the country's reliance on foreign imports. By utilizing government procurement as a lever, Mexico seeks to protect its industrial base from external economic pressures.

The initiative comes as the Mexican government navigates trade tensions with the United States. Specifically, the policy seeks to address the impact of a 50% [1] tariff imposed by the U.S. on Mexican steel. By shifting demand toward internal sources, the administration intends to mitigate the financial damage caused by these trade barriers.

Ebrard said the strategy is designed to ensure that the infrastructure developed within Mexico is built using the materials produced by its own citizens. This approach aligns with broader efforts to promote industrial sovereignty, and economic resilience.

Beyond immediate procurement changes, Mexico is looking toward international cooperation to attract further investment. The government is preparing for the APEC summit scheduled for 2025 [2] in Gyeongju, South Korea, where it plans to promote the "Mexico plan" to international investors.

The priority for the Ministry of Economy remains the stabilization of the siderurgical sector. This includes streamlining the process for government agencies to source steel from local providers, rather than relying on international markets that may be subject to volatile tariff regimes.

“Mexico seeks to protect its industrial base from external economic pressures.”

This policy represents a shift toward economic nationalism in Mexico's procurement strategy. By insulating the domestic steel industry from U.S. tariffs through guaranteed government contracts, Mexico is attempting to decouple its critical infrastructure development from the volatility of North American trade disputes.