US President Joe Biden’s administration is imposing tariffs on steel and aluminum shipped from Mexico that were made elsewhere — an attempt to stop China from avoiding import taxes by routing goods through one of the US’ closest trading partners.
White House National Economic Council Director Lael Brainard said the tariffs announced yesterday would be levied as part of an agreement with Mexico through section 232 of the Trade Expansion Act, which applies to imports that could threaten US national security.
There will be a 25 percent tariff on steel not melted or poured in Mexico and a 10 percent tariff on aluminum.
Photo: Evan Vucci, AP
The new taxes on steel are meant to address the evasion of tariffs by China, the dominant producer of more than half of the world’s steel. The aluminum taxes would also hit production based in China, Belarus, Iran and Russia.
The move is also a clear political shot at Republican Donald Trump, Biden’s predecessor and his likely opponent in November’s election. Brainard noted that Trump could have taken similar actions but failed to do so.
“The president is taking action to close loopholes left by his predecessor that allowed China to circumvent trade rules,” she said.
The financial impact of the tariffs is likely somewhat modest, though, given the volumes of steel and aluminum being routed this way through Mexico.
Administration officials said the US imported 3.8 million tonnes of steel last year from Mexico, with 13 percent of that having been poured or melted outside that country. Similarly, the US imported 105,000 tonnes of aluminum from Mexico and only 6 percent was smelted or cast outside that country.
Still, the issue could be politically relevant. US Senator Sherrod Brown, a Democrat from Ohio, has called for stopping Mexican steel imports, saying that a “surge” from that country is a threat to US steelworkers and a way to evade tariffs.
Brown is seeking reelection against Republican Bernie Moreno, a wealthy businessman from Cleveland. Ohio was once a political bellwether, but it has voted for Trump in the previous two presidential elections.
Implementation of the new tariffs began yesterday with the announcement.
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