Washington tightens steel and aluminum import rules to prevent China from avoiding tariffs
The United States on Wednesday tightened controls on steel and aluminum imports from Mexico as part of its efforts to prevent goods of Chinese origin from evading duty.
It’s the latest step by President Joe Biden’s administration in the run-up to the election, in a series of efforts aimed at protecting against China’s surplus industrial capacity, which Washington has often warned could lead to an influx of goods at unfair prices to other markets.
“Steel imported from Mexico will only benefit from the tariff exemption if its melted and poured in the country, the United States or Canada; Otherwise, it will be subject to a 25% fee,” White House economic adviser Lael Brainard said.
Under Biden’s latest announcement, aluminum imports from Mexico containing primary aluminum smelting or cast in China, Belarus, Iran or Russia will be subject to 10% tariffs.
Mexico will ask importers to provide information on the countries of origin of the products.
The measures fill a major loophole that the previous administration failed to address, and are being used by countries such as China to avoid US tariffs by shipping their products through Mexico, Brainard said.
“Chinese steel and aluminum entering the US market through Mexico evades tariffs, undermines our investments and hurts American workers in states like Pennsylvania and Ohio,” she said.
As Biden’s bid for a second term enters a critical phase, the president is working to win voters in swing states including Pennsylvania.
