Stricter Rules on Steel and Aluminum Imports

The United States announced tougher rules on steel and aluminum imports on Wednesday, in coordination with Mexico. The new rules aim to prevent Chinese-made goods from bypassing tariffs.

Requirements for Duty-Free Benefits

Under the new guidelines, steel from Mexico will only qualify for duty-free treatment if it is melted and poured in Mexico, the U.S., or Canada. Aluminum products from Mexico must not contain primary aluminum smelted or cast in China, Russia, Belarus, or Iran.

Tariffs for Non-Compliant Imports

Imports that do not meet these standards will face steep tariffs—25% on steel and 10% on aluminum. Mexico will also require importers to provide documentation about the origin of products to enforce these rules.

Closing Loopholes and Strengthening Supply Chains

White House economic adviser Lael Brainard said the new rules close loopholes that allowed countries like China to evade U.S. tariffs by routing products through Mexico. The effort aims to strengthen North American steel and aluminum supply chains.

China Responds to U.S. Measures

In response, Liu Pengyu, spokesperson for the Chinese Embassy in Washington, criticized the move. He called it a “political tool” aimed at undermining China’s economy and accused the U.S. of promoting trade protectionism.

U.S. Political Implications and Trade Policy

The measures are part of the Biden administration’s broader strategy to curb China’s industrial overcapacity and protect U.S. jobs. The policy may also appeal to union voters, including United Steelworkers, in the upcoming presidential election.

Recent Tariff Increases on Chinese Imports

In May, the U.S. raised tariffs on other Chinese sectors, such as electric vehicles and semiconductors. Some of these tariffs were pre-emptive, targeting areas where few imports currently enter U.S. markets.