The US government has closed a major loophole that allowed imports of steel and aluminium products from Mexico to evade tariffs by ensuring they do not contain materials from China, Russia, Belarus, or Iran. The move aims to protect American workers and industries from unfair competition.
The new requirements seek to prevent Chinese steel from entering the US market indirectly through Mexico’s duty-free access. Both the US and Mexico are implementing policies to strengthen North American steel and aluminium supply chains and prevent tariff evasion.
Back door
The joint actions with Mexico aim to ensure the long-term viability of the steel and aluminium industries in both countries. The move follows concerns about China’s industrial overcapacity flooding global markets and the need to safeguard domestic industries.
The American Iron and Steel Institute has praised the decision to close off avenues for Chinese steel imports but emphasized the importance of accurate information from Mexico to enforce the new requirements effectively.