Mexico targets Chinese steel imports with increased tariff of nearly 80 per cent

The declaration from Mexico’s economy ministry follows criticism from local producers that Chinese steelmakers have strangled their production

Brazilian steelmakers have also requested their government impose a 25 per cent tariff on Chinese steel imports, though little action has been taken

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Piles of steel pipes to be exported at a port in Lianyungang in China’s Jiangsu province. Photo: Reuters

Published: 5:47am, 29 Dec 2023Updated: 6:08am, 29 Dec 2023

Mexico announced a nearly 80 per cent tariff on some steel imports on Thursday, following criticism from local producers that Chinese steelmakers have strangled their production.

The tariff applies to some Vietnamese exports of cold-rolled steel sheets, although if the groups can prove the steel comes from a country other than China, they are exempt from the tariff, according to a declaration from the economy ministry published in Mexico’s official gazette.

Vietnam’s largest steelmaker, Hoa Phat, is subject to a nearly 12 per cent tariff while Posco Vietnam will face a 26 per cent tariff, though the country of origin exemption also applies to them.

A number of nations have in recent years raised alarm at Chinese steel producers selling their surplus abroad at below-market rates, a practice known as dumping, with some attempting to circumvent “anti-dumping” measures by first shipping the steel to other countries.

In August, Mexico hiked a tariff to 25 per cent on some steel imports from countries with which it does not have a free-trade agreement, including China.

The tariff published on Thursday brings a government anti-dumping investigation opened at the behest of steelmaker Ternium’s local unit nearly two years ago to a close. Ternium declined a request for comment.

The United States has also expressed concern about its own imports of steel and aluminium products from Mexico, where the US alleges a “lack of transparency” regarding their country of origin.