Biden Administration Imposes Tariffs on Mexican Steel and Aluminum to Counter Chinese Trade Evasion

The Biden administration recently announced tariffs on steel and aluminum imported from Mexico but produced elsewhere, citing concerns over China’s strategy to avoid U.S. import taxes by utilizing Mexico as a conduit.

Lael Brainard, director of the White House National Economic Council, clarified that these tariffs, imposed under section 232 of the Trade Expansion Act, aim to safeguard U.S. national security from potential threats posed by certain imports.

Under the new measures, steel not melted or poured in Mexico will face a 25% tariff, while aluminum will be subject to a 10% tariff. The decision particularly targets Chinese steel, which constitutes a significant portion of global production. Aluminum production from China, Belarus, Iran, and Russia will also be affected.

The Biden administration’s move is not only an economic strategy but also a political maneuver, contrasting sharply with the policies of former President Donald Trump. Brainard criticized Trump for failing to address similar trade loopholes during his tenure, portraying Biden’s actions as a corrective step.

While the immediate financial impact of these tariffs is expected to be modest due to the relatively small percentages of affected imports passing through Mexico, the political implications are significant.

Ohio Senator Sherrod Brown, a Democrat, has voiced strong support for halting Mexican steel imports, citing concerns over their impact on U.S. steelworkers and the potential evasion of tariffs.

The implementation of these tariffs commenced immediately following the announcement, marking a proactive stance by the Biden administration in reshaping trade policies to counteract the perceived exploitation of trade rules through third-party channels like Mexico.