Three months after the Mexican government changed the rules for importing steel, the United States today imposed 25 percent tariffs on steel that was exported from Mexico to the American Union, but that was not manufactured in any of the countries of the USMCA. This is to prevent Chinese steel from avoiding import taxes.
“Imports of steel articles and derivative steel articles that are products of Mexico shall be exempt from the duty provided that such steel products are melted and poured in Mexico, Canada, or the United States,” reported the White House in the Proclamation on Adjusting Imports of Steel Into the United States.
Earlier, the director of the White House National Economic Council, Lael Brainard, reported that through Section 232 of the Trade Expansion Act, tariffs of 25 percent are imposed on the import of steel from Mexico not melted or sneaked in Mexico. Additionally, a 10 percent tax, for the same case, but on aluminum.
Brainard said the tariffs are part of an agreement with Mexico. Indeed, on April 15, the Mexican government modified its rules for the import of steel products, for which it has since required a certificate of origin and quality from the steel-producing mill.
The tax is to stop an alleged greater export of Chinese steel to the United States through Mexico, which would be evading tariffs on products manufactured in China.
SteelOrbis asked the Mexican Chamber of the Iron and Steel Industry (Canacero) for an institutional position on the Joe Biden government's measure. The response was that “it is a very important issue for the industry, which we continue to analyze.”