The United States is set to impose national security tariffs on certain steel and aluminum imports from Mexico in an effort to block Chinese metal from entering the US through its southern neighbor. The White House has declared that a 25 percent tariff will be applied to steel imports from Mexico that are not produced in North America. Similarly, aluminum imports from Mexico that contain primary smelt from China, Belarus, Iran, or Russia will be subject to a 10 percent tariff.
According to Financial Times, this decision aligns with previous tariff increases on Chinese goods and aims to bolster support in key industrial regions where President Biden is losing ground to his Republican opponent, Donald Trump, in the upcoming presidential election.
Earlier this year, President Biden also intervened to prevent the acquisition of US Steel by Japanese-owned Nippon Steel, emphasizing his commitment to supporting American steelworkers. According to Associated Press, US Steel, headquartered in Pittsburgh, Pennsylvania, is a significant player in the swing state.
Currently, the US maintains a 25 percent tariff on steel and aluminum imports from China. However, the new measures specifically target shipments that enter the US through Mexican ports. Financial Times has reported that White House stated that these actions are being coordinated with Mexico, which will require its importers to disclose the origin of their steel products.
Bloomberg noted that the US imports approximately 3.8 million tonnes of steel from Mexico, with 13 percent of it being produced outside North America and thus affected by the new tariffs. For aluminum, the tariffs will impact only 6 percent of the 105,000 tonnes imported from Mexico.
