July 18, 2024
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Breaking News: US Takes Aim at Chinese Steel Exports via Mexico with Tariffs! Find Out Why Now!

Breaking News: US Takes Aim at Chinese Steel Exports via Mexico with Tariffs! Find Out Why Now!

In a bold move to protect American industries, the US has announced the imposition of national security tariffs on certain steel and aluminium imports from Mexico. The goal is to prevent Chinese metals from entering the US through the southern border. This decision by the Biden administration comes amidst escalating tensions in the global trade landscape, especially with China. Let’s delve deeper into the implications and reasoning behind this strategic move:

  • Duties of 25 per cent will be enforced on steel imports from Mexico that have not been melted and poured in North America.
  • Aluminium imports from Mexico containing primary smelt from China, Belarus, Iran, or Russia will face a 10 per cent tariff.

The administration’s economic advisor, Lael Brainard, highlighted the evasion of tariffs by Chinese steel and aluminium entering the US market through Mexico as detrimental to American investments and workers, particularly in key battleground states like Pennsylvania and Ohio. By taking action against these imports, Biden aims to secure support from the industrial heartlands where his popularity has been challenged by former President Donald Trump.

Moreover, emphasizing the significance of protecting American industries, Biden intervened to prevent the acquisition of US Steel by Japanese-owned Nippon Steel, positioning this decision as supporting American steelworkers. With the US already imposing a 25 per cent tariff on steel and aluminium imports from China, the focus has now shifted to targeting pathways that allow Chinese products to enter the US disguised as Mexican imports.

The collaborative effort with Mexico to track the origins of steel and aluminium imports aims to ensure transparency and fairness in trade practices. US Trade Representative Katherine Tai expressed optimism about these measures benefiting both American and Mexican workers in the steel and aluminium industries. Notably, only a fraction of the total steel and aluminium imports from Mexico will be affected by the new tariffs, safeguarding the majority of these imports from additional costs.

Brainard drew attention to China’s excessive steel production, which creates global surpluses and distorts market prices through subsidies. This overproduction adversely impacts both American and global markets, necessitating actions to address these imbalances. The Biden administration’s broader strategy to counter Chinese trade practices includes recent tariffs on imports in the clean technology sector, signaling a firm stance on protecting American industries and workers.

In conclusion, the imposition of national security tariffs on steel and aluminium imports from Mexico represents a strategic move by the Biden administration to safeguard American industries and workers from unfair trade practices. By targeting the origins of these imports and collaborating with Mexico, the US aims to strengthen its trade policies and support domestic manufacturing. This decisive action underscores the administration’s commitment to protecting American interests in the global marketplace.

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