WASHINGTON: In an effort to stop commodities with a Chinese provenance from escaping tariffs, the US announced stricter regulations on steel and aluminum imports from Mexico on Wednesday.
The President Joe Biden administration’s election-season measures are the most recent in a line of measures to prevent China’s excess industrial capacity, which Washington has warned may send a wave of cheaply priced goods flooding other markets.
White House National Economic Advisor Lael Brainard informed reporters that steel arriving via Mexico will only be eligible for duty-free benefits if it is melted and poured in that nation, the United States, or Canada. If not, they will be subject to 25% tariffs.
According to Biden’s most recent declaration, imports of aluminum from Mexico that include primary aluminum that is cast or smelted in China, Belarus, Iran, or Russia will additionally be subject to a 10% duty.
Mexico will demand information about the countries of origin of the products from importers. This is on top of its recent tariff increases on aluminum and steel coming from nations with which it does not have free trade agreements.
“By shipping their products through Mexico, countries like China can avoid US tariffs. These actions close a significant loophole that the previous administration neglected to address,” Brainard said.
She claimed that “American workers in states like Pennsylvania and Ohio are harmed by Chinese steel and aluminum that enters the US market through Mexico, evading tariffs.”
The president has been attempting to win over voters in swing areas like Pennsylvania as Biden’s reelection campaign approaches a crucial point.
