The US 25% import tariffs on steel and 10% on aluminum products will cost Mexico's steel industry $2 billion/year, according to national steel chamber Canacero.
The US surplus with Mexico in the last two years was $3.6 billion, it added.
On Thursday, the US announced it would impose the tariffs on imports from Mexico, Canada and the EU.
"It shows that reciprocal measures will affect more than benefit the US industry," Canacero said. "In this matter we are a fully integrated region, where 76% of the exports of steel from the US are sent to Mexico and Canada."
Still, Mexico must adopt urgent measures following US moves against other allies including the EU and Canada, according to Canacero.
"According to a principle of complete reciprocity, the decisions that Mexico adopts must contemplate a mirror measure, considering the same products and the same tariffs, without exceptions. A minor decision would be unacceptable," Canacero said in a statement late Thursday.
The steel chamber reiterated Mexico in no way represents a threat to the national security of the US.
"Mexican authorities must continue searching for the necessary ways for our country to be exempt from this distorting measure; countries such as Argentina, Brazil and South Korea have reached agreements," Canacero asked.
Canacero also stressed the measure could generate market distortions and unfair exports towards the country, and said Mexico's government must be prepared to protect the country and avoid harming the domestic industry with necessary and fast actions.
Ternium's CEO Maximo Vedoya said "the US exports more steel to Mexico than it imports. We are not a threat to your national security. We share the crisis of global overcapacity caused by Chinese disloyal exports. Imposing tariffs on Mexican steel will harm the US more than favoring it," it said in its Twitter account on Thursday.
Steel producers ArcelorMittal, Deacero and Ahmsa said their positions are reflected by Canacero's statement.
Simec and Gerdau Corsa did not comment.
