The United States on Wednesday unveiled stricter rules on steel and aluminum imports in coordination with Mexico as part of an effort to prevent Chinese-made goods from circumventing tariffs.
According to the new rules outlined by White House officials, steel arriving via Mexico can qualify for duty-free benefits only if melted and poured in that country, the United States or Canada.
“These actions fix a major loophole that the previous administration failed to address, and that countries like China use to avoid U.S. tariffs by shipping their products through Mexico,” White House National Economic Adviser Lael Brainard told reporters, explaining that goods that don’t satisfy that criteria will face tariffs of 25%.
Wednesday’s new rules place a 10% tariff on aluminum smelt or cast in China, Belarus, Iran or Russia. The rules are part of long-running Biden administration efforts to prevent China’s excess industrial capacity from appearing at unfairly priced rates in other markets.
According to a White House statement, Mexico is requiring importers to provide information on product origins.
“Both countries will implement policies to jointly prevent tariff evasion on steel and aluminum, and strengthen North American steel and aluminum supply chains,” said Biden and Mexican President Andres Manuel Lopez Obrador in a joint statement released by the White House.
VOA is seeking reaction to these new rules from China.
According to U.S. Census Bureau data, only about 13% of the 3.8 million tons of steel imported from Mexico originated elsewhere.
Biden is seeking votes from union members, particularly United Steelworkers, in the upcoming United States presidential election.
The United States also increased tariffs in May on Chinese import sectors, including electric vehicles and semiconductors. Some of the tariffs were seen as preemptive with few imports being brought into U.S. markets.
