Ternium (TX) Urges Stronger USMCA Rules Amid U.S. Steel Tariff Hike

Ternium S.A. (NYSE:TX) is one of the top 10 materials stocks to buy according to analysts. On June 19, during a presentation to analysts in New York, Ternium called on the United States, Mexico, and Canada to reinforce the United States-Mexico-Canada Agreement (USMCA). The company emphasized the need for enhanced terms to address trade challenges in the face of new U.S. steel tariffs.

A close-up of a worker inspecting a galvanised sheet steel product in a well-lit warehouse.

For context, on June 4, 2025, U.S. President Donald Trump doubled the tariffs on steel and aluminum imports to 50%. The move impacted Mexican steel exports unless they comply with USMCA’s strict “rules of origin” requirements, which mandate a high percentage of North American content. Shipments from Mexico to the U.S. under the USMCA are generally exempt from these tariffs; however, non-compliant steel products face a 50% duty.

Against this background, Ternium advocated for tougher “rules of origin” to prevent countries like China from routing steel through Mexico to bypass U.S. tariffs. Reuters reported that Ternium highlighted that these rules are critical to protecting North American steel industries from unfair trade practices.

Ternium S.A. (NYSE:TX), based in Luxembourg, is a leading steel manufacturer with operations spanning Mexico, Brazil, Argentina, and other Latin American markets. It produces a wide range of flat and long steel products, as well as iron ore, through its mining segment. The company exported 2.3 million tons of steel to the U.S. in 2024. Analysts view Ternium as a compelling investment opportunity due to its vertical integration, regional dominance, and strategic investments in energy-efficient production and supply chain resilience.

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