Biden Administration Imposes Tariffs on Mexican Steel and Aluminum with China Link

In a move to prevent China from evading American tariffs, the Biden administration announced measures to impose tariffs on Mexican metals containing Chinese components.

Trade Loophole Closure

American officials revealed that the new tariffs aim to close a trade loophole that has enabled Chinese steel and aluminum to bypass existing U.S. tariffs through Mexico.

Under the new measures, the United States will impose a 25 percent tariff on Mexican steel if it is melted or poured outside of North America before being turned into a finished product. Furthermore, Mexican aluminum entering the United States will face a 10 percent tariff if it contains metal that has been smelted or cast in China, Belarus, Iran, or Russia.

Lael Brainard, the director of the White House’s National Economic Council, confirmed the imposition of the tariffs as a crucial step in preventing the influx of cheap, state-subsidized Chinese metals into the American market.