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The Biden administration has announced the imposition of tariffs on steel and aluminum shipped from Mexico that were made elsewhere. This move aims to prevent China from avoiding import taxes by routing goods through Mexico, one of the United States' key trading partners.
The tariffs, which were revealed as part of an agreement with Mexico under section 232 of the Trade Expansion Act, target steel and aluminum imports that could potentially pose a threat to U.S. national security. A 25% tariff will be applied to steel not melted or poured in Mexico, while a 10% tariff will be imposed on aluminum.
The primary objective of the new taxes on steel is to address the practice of tariff evasion by China, a major global steel producer. The aluminum tariffs will also impact production originating from China, Belarus, Iran, and Russia.
This decision is seen as a direct response to the previous administration's handling of trade policies. The Biden administration criticized former President Trump for failing to take similar actions to prevent China from circumventing trade rules.
While the financial impact of these tariffs may be relatively modest due to the volumes of steel and aluminum involved, the move is significant politically. The U.S. imported 3.8 million tons of steel from Mexico last year, with 13% of that originating from outside Mexico. Similarly, 105,000 metric tons of aluminum were imported from Mexico, with 6% produced outside the country.
Senator Sherrod Brown of Ohio has raised concerns about the surge in Mexican steel imports, citing it as a threat to U.S. steelworkers and a means to evade tariffs. The issue is particularly relevant in Ohio, where Brown is seeking reelection against Republican Bernie Moreno, a prominent businessman from Cleveland.
The implementation of the new tariffs begins immediately following the announcement, marking a significant development in U.S. trade policy.