“Mexico and the United States are taking key steps today to protect North American steel and aluminum markets against unfair trade,” Presidents Andrés Manuel López Obrador and Joe Biden said in a joint statement released this Wednesday.
The Presidents of Mexico and the United States agreed on a set of measures to prevent unfair imports into their countries of steel and aluminum originating from China, Belarus, Iran or Russia.
“Mexico and the United States are taking key steps today to protect North American steel and aluminum markets against unfair trade,” Presidents Andrés Manuel López Obrador and Joe Biden said in a joint statement released this Wednesday.
Both nations will implement policies to jointly prevent tariff evasion on steel and aluminum, and strengthen supply chains for these products in North America (including Canada).
To enter the United States free of Section 232 tariffs, steel imports from Mexico must be melted and poured in Mexico, the United States or Canada.
Additionally, aluminum imports from Mexico must not contain primary aluminum for which the reported primary smelting country (largest smelting country), secondary smelting country (largest smelting country), or most recent smelting country is Belarus, China , Iran or Russia.
These measures are in addition to the increase in tariffs at rates of between 25 and 50% that Mexico decreed last April on the import of dozens of steel and aluminum products from nations with which it does not have free trade agreements.
“Today’s announcement is good news for the U.S. and Mexican steel and aluminum industries, for the communities they support, and most importantly, for our steel and aluminum workers,” said Katharine Tai, White House trade representative, in a press release.
From the perspective of the US government, these joint actions with Mexico will help ensure the long-term viability of the steel and aluminum industries and the integration of the North American market for both products.
“This action closes a gap that the previous administration and its isolated trade policies left unaddressed, and demonstrates that when we act together, we strengthen our position to defend American workers and businesses from the global non-trade overcapacity that emanates from the the state-run economy and trade of the People's Republic of China,” Tai added.
Tai immediately commented: “We recognize this important step taken by Mexico to work together on a resilient trade policy that puts workers front and center.”
Of the total Mexican imports of foundry, iron and steel products and iron or steel foundry manufactures in 2023, for US$ 34,648 million, 38% originated in the United States and 11% in China.
That same year, imports to Mexico of aluminum and its manufactures totaled US$9,496 million, of which 38% came from the United States and 24% from China.
"In the coming weeks and months, Mexico and the United States will continue to work together to protect the North American steel and aluminum markets from unfair trade practices," Obrador and Biden said in their statement.
Regarding the US market, of the total imports of foundry, iron and steel products and iron or steel foundry manufactures in 2023, for US$ 86,421 million, 14% originated in China and 13% in Mexico.
Finally, of the total US imports of aluminum and its manufactures in 2023, for US$28,296 million, the Chinese share was 10% and the Mexican share was 7%, according to data from the US Department of Commerce.
