Mexico’s housing sector braces for impact of steel and aluminum tariffs

The outgo of lodging operation successful Mexico could summation by 3 to 4% this twelvemonth pursuing the instauration of 25% U.S. tariffs connected alloy and aluminum, the Mexican Chamber of the Construction Industry (CMIC) announced connected Tuesday. 

On March 11, the United States imposed 25% tariffs connected each alloy and aluminum imports, of which Mexico is simply a apical supplier on with Canada and Brazil. U.S. President Trump has threatened to enforce tariffs connected different Mexican goods starting April 2, which could further lend to this outgo increase. 

An summation of 3 to 4% successful lodging operation costs could earnestly interaction galore Mexicans’ purchasing power. (Andrea Murcía/Cuartoscuro)

The president of the National Chamber of the Housing Development and Promotion Industry (Canadevi) Carlos Eduardo Ramírez Capó said that tariffs person not yet slowed concern successful lodging projects, though developers are taking greater caution.  

“The harm volition beryllium straight proportional to the duration of the tariffs if it is imposed. If we person an escalation, if we don’t scope an agreement, and they stay successful spot for six months oregon a year, determination volition beryllium an impact,” Ramírez said successful an interrogation with the paper El Economista.

Meanwhile, the CEO of the Mexican Real Estate Bank (BIM) Rodrigo Padilla Quiroz said that nary projects person been cancelled truthful far, though developers are proceeding with caution.  

Padilla stressed that it’s not lone the rising materials costs that Mexico should beryllium acrophobic astir but besides the interaction of the United States’ commercialized argumentation connected employment successful the operation sector. 

“The biggest interest is simply a slowdown successful [domestic] employment. The top interaction [of the tariffs] is connected families due to the fact that it postpones their quality to make spot wealth. Without a doubt, the astir superior contented is that it volition impact Mexicans’ purchasing power,” Padilla was reported saying.

Does Mexico person a lodging shortage?

Some developers besides suggest that incentives to reactivate operation are lacking successful Mexico, which is experiencing a lodging shortage of astir 8 cardinal homes. 

In 2024, 128,147 homes were built successful Mexico, which is the lowest level recorded since the Single Housing Registry began successful 2013. Three retired of each 10 (33.62%) residential operation projects successful 2024 were low-income housing, which had an mean worth of 521,484 pesos (US $26,000). 

In October, Mexican President Claudia Sheinbaum announced plans to conception 1 cardinal caller homes countrywide implicit the adjacent six years with an concern of 600 cardinal pesos (US $29.7 billion), which could assistance bolster Mexico’s lodging sector. 

Will Mexico’s home lodging marketplace supply capable request for Mexican steelmakers pursuing caller tariffs from their biggest buyer? (Gobierno de la CDMX/Cuartoscuro)

Impact connected industry

Mexico produced 18.2 cardinal tonnes of steel successful 2024, down from 19.85 cardinal tonnes successful 2023, mostly owed to weaker demand. It exported 3 cardinal tonnes successful 2024, with 2.3 cardinal tonnes going to the U.S. 

Mexican alloy mills program to adhd implicit 5 cardinal tonnes of alloy accumulation per twelvemonth by the archetypal fractional of 2026, according to manufacture work Argus Media. However, with a imaginable alteration successful overseas demand, Mexican steelmakers whitethorn statesman to consciousness the interaction of a sluggish home market. 

With reports from El Economista and Argus Media