The United States on Wednesday unveiled stricter rules on steel and aluminum imports from Mexico, seeking to prevent Chinese-made products from evading tariffs.
The election-season moves by President Joe Biden’s administration are the latest in a series of clearly campaign-driven measures targeting China’s industrial overcapacity, which Washington has repeatedly warned could bring a flood of goods at unfair prices.
Steel arriving through Mexico will only qualify for tariff exemption if it is smelted in Mexico, the United States or Canada, White House economic adviser Lael Brainard told reporters. Otherwise, it will face 25% tariffs.
Under the latest ruling, aluminum imports from Mexico that contain primary aluminum smelted or molded in China, Belarus, Iran or Russia will also face a 10% tariff.
Mexico will require importers to provide information on the countries of origin of products.
The move follows recent tariff increases on steel and aluminum from countries with which the United States does not have free trade agreements.
“These actions close an important loophole that the previous administration failed to address, and that countries like China use to avoid U.S. tariffs by shipping their products through Mexico,” Brainard said.
“Chinese steel and aluminum entering the U.S. market through Mexico evades tariffs, undermines our investments and harms American workers in states like Pennsylvania and Ohio,” he said.
As Biden’s re-election bid enters a critical phase, Biden is now scrambling to win over voters in states like Pennsylvania. What he has not done in almost four years of mandate.
“China and other nations must not be allowed to exploit trade with our neighbors to avoid the enforcement of U.S. trade laws,” said Scott Paul, president of the Alliance for American Manufacturing.
Nearly 90 percent of the 3.8 million tons of steel imported from Mexico is already melted and cast in the United States, Canada or Mexico, an official said on condition of anonymity. The rest comes from countries such as China, he added without giving further details.
Similarly, of the 105,000 metric tons of aluminum originating in Mexico, 94% was melted or cast in the three North American countries.
But officials maintained that China produces steel beyond domestic demand.
“These joint actions with Mexico will help ensure the long-term viability of our steel and aluminum industries,” said U.S. Trade Representative Katherine Tai.
In May, the United States announced sharp increases in tariffs on Chinese imports, including on electric vehicles and semiconductors.
Source: with information from AFP.