WASHINGTON, July 10 (AFP): The United States unveiled stricter rules Wednesday on steel and aluminum imports from Mexico, moving to prevent China-origin goods from avoiding tariffs.
The election-season actions by President Joe Biden's administration mark the latest in a series of efforts to guard against excess industrial capacity in China, which Washington has repeatedly warned could bring a flood of unfairly priced goods to other markets.
Steel arriving via Mexico will qualify for duty-free benefits only if melted and poured in that country, or in the United States or Canada, White House National Economic Advisor Lael Brainard told reporters. Otherwise, they will face tariffs of 25 per cent.
Under Biden's latest proclamation, aluminum imports from Mexico that contain primary aluminum smelt or cast in China, Belarus, Iran or Russia will also face a 10 per cent tariff.
Mexico will require importers to provide information about the products' countries of origin.
This adds to its recent tariff hikes on steel and aluminum from countries it has no free trade agreements with.
"These actions fix a major loophole that the previous administration failed to address, and that countries like China use to avoid US tariffs by shipping their products through Mexico," Brainard said.
She charged that "Chinese steel and aluminum entering the US market through Mexico evades tariffs, undermines our investments and harms American workers in states like Pennsylvania and Ohio."
As Biden's reelection bid enters a critical stage, the president has been working to win over voters in swing states including Pennsylvania.
"China and other nations must not be allowed to exploit trade with our neighbors in order to avoid US trade enforcement," said Scott Paul, president at the Alliance for American Manufacturing.
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