On July 10th, in order to prevent China through Mexico to the United States exports of steel and aluminum and as a way to avoid tariffs, the Biden administration announced on the same day will be part of the Mexican imports of metal manufactured in China to impose tariffs.
Content of The New Policy
According to the new policy, if you can not prove that steel products and derived steel products are melted or poured in Mexico, Canada and the United States, steel products imported from Mexico will be 25% of the U.S. “Section 232” tariffs. Previously imported steel from Mexico can enter the United States duty-free.
Image from：whitehouse.gov
In addition, Brainard said, if the aluminum products from Mexico into the United States, containing in China, Belarus, Iran and Russia smelting or casting components, will also face a 10% tariff. Brainard declared, “Chinese steel and aluminum enter the U.S. market through Mexico, evading tariffs, undermining our investments, and hurting American workers in states like Pennsylvania and Ohio.”
The new tariff policy went into effect the same day, July 10, according to the Associated Press. Mexico’s Millennium newspaper said on the 10th, U.S. President Joe Biden and Mexican President Lopez said in a joint statement released by the White House on the same day, Mexico has agreed to the U.S. side of the request for cross-border steel products to provide information on the origin of the content. U.S. authorities on the “Mexico may become a Chinese product into the U.S. ‘back door’” growing concern. But in fact, the U.S. imported 3.8 million tons of steel from Mexico in 2023, according to U.S. Census Bureau data. Only 13 percent of that was melted or poured outside of Mexico. In addition, the U.S. imports about 105,000 tons of aluminum from Mexico each year, according to the Hispanic edition of the Los Angeles Times. About 6% of that is smelted or cast outside of Mexico.
Expert Interpretation
In response to this policy, industry experts have provided an in-depth and rationalized interpretation. For those products composed of complex components, steel and aluminum is only one part of the composition of the product. And imported from Mexico to the United States before it has been assembled. U.S. Customs should not be required to track the source of the steel and aluminum. Unless the impact of such products has reached the United States concluded that the so-called threat to the degree of national security. Experts say the subsequent U.S. 232 tariffs on Mexican steel and aluminum imports are still based on the products listed in its three previous announcements.
Practicalities for Chinese Suppliers
Dawang Metals has more than two decades of experience in supplying U.S. companies. It has a number of well-known U.S. customers who cooperate with it all year round. American customers usually place production orders for metal castings with Dawang. At the same time, some other related parts purchased in China or neighboring countries are assembled at Dawang. The assembled parts are then imported to the United States. The assembled simple equipment is not classified as steel or aluminum products. This saves procurement costs and avoids policy implications.
Dawang can provide customers with a complete industry chain service. Product design assistance, casting production, CNC machining, assembly of supporting parts, delivery and customs clearance. If you are still looking for reliable suppliers, please contact Dawang Metals.
