US, Mexico Near Steel Quota Deal

According to sources familiar with the matter, the United States and Mexico are nearing an agreement to eliminate a 50% tariff on imported steel imposed by U.S. President Donald Trump, within certain specified limits. This would essentially reinstate a similar agreement between the two countries from Trump's first term.
President Trump has not been directly involved in the negotiations, but any agreement reached would still require his approval. A source, who spoke on condition of anonymity because the negotiations are confidential, said they have been led by U.S. Commerce Secretary Howard Gutnick.
The sources added that the agreement is not yet finalized. Under the current terms, U.S. buyers could receive duty-free treatment as long as their total imports of Mexican steel remain within limits based on historical trade levels. They noted that the new quotas would be higher than those allowed under the similar agreement during Trump's first term. The previous quotas were not fixed figures but were designed as safeguards against surges in imports.
The White House did not immediately respond to requests for comment. The office of Mexican President Claudia Sheinbaum also did not respond to requests for comment.
Following the report's release, steel stocks in the U.S. fell in after-hours trading. Cleveland-Cliffs Inc. dropped more than 7%, and Nucor fell over 4%. Meanwhile, the Mexican peso narrowed its losses.