Biden Administration’s Response to Circumvention of U.S. Tariffs

The Biden Administration’s Move to Prevent Circumvention of U.S. Tariffs

The Biden administration has taken significant steps to address the issue of Chinese steel and aluminum imports being routed through Mexico to evade American tariffs. In response to this, the administration has announced measures to impose tariffs on Mexican metals that have origins in China.

Tariffs Imposed:

• The United States will now apply a 25 percent tariff on Mexican steel that has been melted or poured outside of North America before being transformed into a finished product.
• Mexican aluminum entering the U.S. will face a 10 percent tariff if it contains metal that has been smelted or cast in countries like China, Belarus, Iran, or Russia.

Trade Loophole Closure:

American officials highlighted that these tariffs aim to close a trade loophole that has allowed subsidized Chinese metals to bypass existing U.S. tariffs, thus safeguarding American steel and aluminum producers, including those who have recently received investments from government funds.

Mexico’s Response:

Mexico has also taken steps by increasing its tariffs on steel and aluminum from certain countries and implementing stricter requirements for importers to disclose the origins of their steel products.

Overall, the Biden administration’s actions reflect a commitment to protecting American industries and ensuring fair trade practices in the steel and aluminum sectors.