The Biden Administration Imposes Tariffs on Steel and Aluminum Shipped from Mexico to Curb China’s Trade Tactics

The Biden administration has taken a significant step in addressing trade loopholes by imposing tariffs on steel and aluminum shipped from Mexico that were made elsewhere. This move is aimed at stopping China from avoiding import taxes by routing goods through one of the United States’ closest trading partners, Mexico. The announcement comes as a clear political shot at former President Donald Trump for not addressing this issue during his presidency.

Lael Brainard, director of the White House National Economic Council, stated that the tariffs announced will be imposed as part of an agreement with Mexico under section 232 of the Trade Expansion Act, which applies to imports that could pose a threat to U.S. national security. The tariffs include a 25% duty on steel that is not melted or poured in Mexico and a 10% duty on aluminum.

These new taxes are designed to combat the evasion of tariffs by China, the world’s dominant producer of steel. The aluminum tariffs will also impact production from countries like Belarus, Iran, and Russia.

While the financial impact of the tariffs may be modest due to the volumes of steel and aluminum being routed through Mexico, the move holds political significance. Senator Sherrod Brown of Ohio has called for a halt to Mexican steel imports, citing them as a threat to U.S. steelworkers and a means to circumvent tariffs.

The implementation of these tariffs begins immediately, signaling a strong stance by the Biden administration in enforcing trade regulations and closing loopholes in international commerce.