The Biden administration has taken significant steps to prevent China from bypassing American tariffs on Chinese steel and aluminum by routing these imports through Mexico. This move aims to close a trade loophole that has allowed cheap, state-subsidized Chinese metals to evade existing U.S. tariffs.
Under the new measures, the United States will impose a 25% tariff on Mexican steel that is melted or poured outside of North America before being processed into a finished product. Previously, such steel would have entered the country duty-free. Additionally, Mexican aluminum entering the U.S. will face a 10% tariff if it contains metal that has been smelted or cast in China, Belarus, Iran, or Russia.
Mexico has also taken steps by increasing its own tariffs on steel and aluminum imports from certain countries. Importers will now be required to provide more detailed information about the origin of their steel products.
The Biden administration’s decision aims to protect American factories producing steel and aluminum, particularly those that have recently received new investments from government funds.
