US, Mexico move to stop China evading steel, aluminium tariffs
- The US unveiled stricter rules on steel and aluminium imports from Mexico, moving to prevent China-origin goods from avoiding tariffs
The US and Mexico on Wednesday announced new steps to fight the circumvention of US tariffs on steel and aluminium by China and other countries that ship products through Mexico, implementing a North American “melted and poured” standard for steel.
The election-season moves by President Joe Biden’s administration mark the latest in a series of efforts to guard against excess industrial capacity in China – which Washington has repeatedly warned could bring a flood of unfairly priced goods to other markets.
The White House said that under a new policy implemented by President Joe Biden, steel product imports from Mexico will be subject to 25 per cent US “Section 232” tariffs unless the steel is documented to have been melted and poured in Mexico, the US or Canada.
Similarly, for aluminium product imports from Mexico to escape the 10 per cent Section 232 tariffs, they must not contain primary aluminium that is smelt or cast in China, Russia, Belarus or Iran.
“These actions fix a major loophole that the previous administration failed to address, and that countries like China use to avoid US tariffs by shipping their products through Mexico,” White House National Economic Adviser Lael Brainard told reporters.
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She charged that “Chinese steel and aluminium entering the US market through Mexico evades tariffs, undermines our investments and harms American workers in states like Pennsylvania and Ohio.”