Photo: Pixabay

By KELIN DILLON

On Wednesday, July 10, the United States and Mexico announced a joint economic venture to prevent Chinese companies from evading steel and aluminum tariffs via exploited loopholes.

According to a joint release from the administration of U.S. President Joe Biden and Mexican President Andrés Manuel López Obrador (AMLO), the new “melt and pour” rule will implement a 25 percent tax on any steel imported into the United States from Mexico, unless the materials were proven to have been smelted in either the United States, Mexico or Canada.

Likewise, aluminum primarily sourced from China, Russia, Belarus or Iran and exported through Mexico will be subject to a 10 percent U.S. tariff.

Any steel or aluminum products imported from Mexico to the United States must submit an analysis certificate confirming the materials’ origin to the U.S. Customs and Border Protection upon arrival.

“Both countries will implement policies to jointly prevent tariff evasion on steel and aluminum, and strengthen North American steel and aluminum supply chains,” read the neighboring countries’ joint statement.

“When we act together, we are in a stronger position to address the global non-market capability that emanates from the People’s Republic of China’s state-led, non-market economic and trade approach,” continued the statement.

The move comes as the United States attempts to tighten up its imports of Chinese products believed to be entering the nation by using Mexico as a backdoor amid growing concerns of an upcoming flood of Chinese metals into the North American market.