Estimating the impact for Mexico of a 25% tariff on Steel and Aluminium To summarize the amounts: - Steel exports: $4,241.6 million (value), 3.8 million metric tons (volume). - Aluminum exports: $2,065 million (value), 1.2 million metric tons (volume). A 25% tariff would directly increase the cost of these exports, leading to a reduction in the effective revenue earned by exporters, unless the price increase is passed onto customers. Formula to estimate impact on value: Impact on value = Export value × 25% For steel: Impact = 4,241.6 million × 0.25 = $1,060.4 million For aluminum: Impact = 2,065 million × 0.25 = $516.25 million Total impact on value: $1,060.4 million (steel) + $516.25 million (aluminum) = $1,576.65 million So, the total estimated impact of a 25% tariff on Mexico’s steel and aluminum exports to the U.S. would be around $1.58 billion in reduced export value. This assumes that the full tariff is absorbed by the exporters or passed on to customers, and doesn’t account for potential changes in demand or the ability to mitigate costs through adjustments in pricing strategies.