Mexico Steel Group Boss on US Tariffs and Global Trade Concerns

Concerns Over Global Trade and Tariffs

• 😟 Rahul Gutierrez Muetsza, chairman of Deacero, expresses significant worry about the "new world order" of global trade, particularly due to unilateral and non-reciprocal tariffs imposed by the United States.
• 🌍 He highlights the challenge of being "squeezed between" major powers like the US and China, especially with China's continued subsidization of exports.

Perceived Unfairness of US Tariffs

• ⚖️ The imposition of tariffs is described as arbitrary and random, with specific examples of how certain countries are treated differently.
• 💡 A paradox is noted where the US applies broad tariffs on steel but grants exemptions, while still imposing tariffs on Mexico, a country with a trade surplus in steel.
• 🏭 The speaker points out that many companies exporting from Mexico to the US are actually American companies, meaning the tariffs are effectively hurting US businesses.

Deacero's Business and Environmental Efforts

• ♻️ Deacero is highlighted as Mexico's largest recycler and a company committed to the circular economy and decarbonization.
• 🌱 The company utilizes over 20% renewable energy and aims to increase this to 55%, positioning itself to have the lowest carbon emissions in the steel industry.
• 😠 Despite these positive contributions, the company feels unfairly targeted by the tariffs, leading to anger and frustration.

China's Role and State Capitalism

• 🇨🇳 The root cause of the disruption is identified as China's market disruption through subsidies, particularly in the capital-intensive steel industry, over the past 25 years.
• 🏦 State-owned Chinese companies, unlike private investors, do not require a return on capital, allowing them to pour money into production and distort markets.

Hope for Negotiation and Patience

• ⏳ Deacero and the Mexican government have been patient in dealing with the US, despite feeling subjected to "extortion."
• 🤝 There is hope for a better negotiation with the United States within the next two months, though no guarantees are provided.