U.S. Targets Chinese Steel Tariff Evasion with New Measures

The Biden administration is imposing tariffs on steel and aluminum imports from Mexico that were manufactured elsewhere. This measure, part of an agreement with Mexico under section 232 of the Trade Expansion Act, aims to address imports that could threaten U.S. national security. Specifically, a 25% tariff will be applied to steel not melted or poured in Mexico, and a 10% tariff will be applied to aluminum. These tariffs will also impact production in China, Belarus, Iran, and Russia.

The financial impact of these tariffs is expected to be modest due to the relatively low volume of steel and aluminum imports being routed through Mexico. However, the move is perceived as a political statement, drawing attention to the actions that former President Donald Trump could have taken but did not. The tariffs also come in response to concerns about tariff evasion by Chinese companies, aiming to safeguard the integrity of North American steel and aluminum markets.