WASHINGTON — The Biden administration took steps Wednesday to prevent China from circumventing U.S. tariffs on Chinese steel and aluminum by routing those imports through Mexico.
The administration said it would impose tariffs on imports of Mexican metals that are partially made in China. U.S. officials said the move would close a trade loophole that has allowed cheap, state-subsidized Chinese metals to circumvent existing U.S. tariffs.
The United States will now impose a 25% tariff on Mexican steel that is melted or poured outside of North America before being turned into a finished product. Previously, that steel would have entered the country duty-free.
Mexican aluminum coming into the United States will face a tariff of 10% if it contains metal that has been smelted or cast in China, Belarus, Iran or Russia, said Lael Brainard, director of the White House’s National Economic Council.
Mexico, which recently increased its own tariffs on steel and aluminum from certain countries, will require importers to provide more information about where their steel products come from, the announcement said. The changes will take effect immediately.
Officials in the Biden administration said the United States wanted to protect American factories that produce steel and aluminum, including those that have recently received new investments from government funds.
“Chinese steel and aluminum entering the U.S. market through Mexico evades tariffs, undermines our investments, and harms American workers in states like Pennsylvania and Ohio,” Brainard said.
“When China’s export surges harm our markets, whether directly or via other countries, we will act,” she added.
Administration officials said that 3.8 million tons of steel came into the United States through Mexico last year and that overall steel imports from Mexico had been on the rise. About 13% of Mexican steel imports into the United States last year were melted or poured outside of North America, according to the White House.
Biden administration officials said they had worked closely with the Mexican government on the measure and that they had been clear with Chinese officials about their concerns about unfair Chinese trade practices.
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