Biden administration to tax foreign-made steel and aluminum imports routed through Mexico

Date:

Share post:


WASHINGTON — The Biden administration is imposing tariffs on steel and aluminum shipped from Mexico that were made elsewhere — an attempt to stop China from avoiding import taxes by routing goods through one of the United States’ closest trading partners.

Lael Brainard, director of the White House National Economic Council, said the tariffs announced Wednesday will be levied as part of an agreement with Mexico through section 232 of the Trade Expansion Act, which applies to imports that could threaten U.S. national security.

There will be a 25% tariff on steel not melted or poured in Mexico and a 10% tariff on aluminum.

The new taxes on steel are meant to address the evasion of tariffs by China, the dominant producer of more than half of the world’s steel. The aluminum taxes would also hit production based in China, Belarus, Iran and Russia.

The move is also a clear political shot at Republican Donald Trump, President Joe Biden’s predecessor and his likely opponent in November’s election. Brainard noted that Trump could have taken similar actions but failed to do so.

“The president is taking action to close loopholes left by his predecessor that allowed China to circumvent trade rules,” she said.

The financial impact of the tariffs is likely somewhat modest, though, given the volumes of steel and aluminum being routed this way through Mexico.

Administration officials said the U.S. imported 3.8 million tons of steel last year from Mexico, with 13% of that having been poured or melted outside that country. Similarly, the U.S. imported 105,000 metric tons of aluminum from Mexico and only 6% was smelted or cast outside that country.

Still, the issue could be politically relevant. Sen. Sherrod Brown, D-Ohio, has called for stopping Mexican steel imports, saying that a “surge” from that country is a threat to U.S. steelworkers and a way to evade tariffs.

Brown is seeking reelection against Republican Bernie Moreno, a wealthy businessman from Cleveland. Ohio was once a political bellwether, but it has voted for Trump in the previous two presidential elections.

Implementation of the new tariffs begins Wednesday with the announcement.



Source link

Lisa Holden
Lisa Holden
Lisa Holden is a news writer for LinkDaddy News. She writes health, sport, tech, and more. Some of her favorite topics include the latest trends in fitness and wellness, the best ways to use technology to improve your life, and the latest developments in medical research.

Recent posts

Related articles

Philippine president orders shutdown of Chinese-run online gambling outfits employing thousands.

MANILA, Philippines -- President Ferdinand Marcos Jr. on Monday ordered an immediate ban on widespread and mostly...

Troubled Boeing stays close to the ground at a major UK air show

LONDON -- European planemaker Airbus plans to show off its newest passenger jet with daily flight demonstrations...

EPA awards $4.3 billion to fund projects in 30 states to reduce climate pollution

WASHINGTON -- The Environmental Protection Agency is awarding $4.3 billion in grants to fund projects in 30...

Stock market today: Asian shares fall after Wall St ends worst week; Biden withdraw from 2024 race

Asian stocks were mostly lower Monday after President Joe Biden exited the 2024 race. The downbeat start...

China's central bank cuts interest rates, moving to put more pep into the economy

BANGKOK -- China’s central bank has cut both its five-year loan prime rate and its one-year rate,...

On a summer Sunday, Biden withdrew with a text statement. News outlets struggled for visuals

In an intensely visual news world, a seismic week of politics was transformed again in an instant...

Delta Air Lines says cancellations continue as it tries to restore operations after tech outage

Airlines, including Delta Air Lines, continued to struggle to restore operations two days after a faulty software...

Anti-whaling campaigner arrested in Greenland and police say he may be extradited to Japan

BERLIN -- Greenland police arrested a prominent environmental activist and anti-whaling campaigner on Sunday on an international...