The Biden administration announced that the U.S. and Mexico are working together to prevent Chinese imports into the steel and aluminum market.
According to a White House fact sheet:
American workers and businesses, including those in the steel and aluminum industries, are as competitive as anyone when competition is fair. But the People’s Republic of China’s (PRC) non-market policies and practices are far from fair and have contributed to a global non-market excess capacity crisis that poses an existential threat to the market-oriented steel and aluminum industries. Through its impact on imports, global non-market excess capacity threatens U.S. national security, including by eroding U.S. steel and aluminum manufacturing capacity.
The measures announced today by the United States and Mexico will help eliminate global non-market excess capacity by preventing China and other countries from evading tariffs on steel and aluminum imported into the United States from Mexico. These measures will also encourage North American production of steel and aluminum – critical raw materials for downstream manufacturing – and further integrate North American industrial supply chains.
Today, the United States and Mexico announced important joint actions to prevent the evasion of steel and aluminum tariffs and strengthen North American steel and aluminum supply chains.
The United States will implement melting and casting requirements and smelting and casting requirements for steel and aluminum imports from Mexico, respectively.
Under these requirements, to be imported into the United States exempt from Section 232 duties, steel imports from Mexico must be melted and cast in Mexico, the United States, or Canada, and aluminum imports from Mexico cannot contain primary aluminum melted or cast in Belarus, China, Iran, or Russia.
• These U.S. measures join Mexico’s recent increases in tariffs on steel and aluminum from non-FTA countries.
“Today’s announcement is good news for the U.S. and Mexican steel and aluminum industries, the communities they support, and most importantly, steel and aluminum workers,” U.S. Trade Representative Katherine Tai said in a statement provided to Politicus USA. “Our joint action with Mexico helps ensure the long-term viability of the steel and aluminum industries and the integrity of North American steel and aluminum market integration. This action corrects loopholes that were not addressed by the previous administration and its unilateral trade policy, and shows that together we will be in a stronger position to protect U.S. workers and businesses from global non-market excess capacity resulting from China’s state-led economic and trade approach. We recognize this important step taken by Mexico to collaborate on resilient trade policies that put workers first.”
While President Trump has made bold statements about getting tough on China, it has been Joe Biden who has taken real action to hold China accountable and protect American jobs.
