US introduces new rules targeting Chinese and other foreign firms shipping steel and aluminium through Mexico to evade tariffs. Companies must now prove product origins to avoid border taxes, expanding protections originally launched under Trump in 2018.
Biden aims to show toughness on China amid election pressures. Tariffs, initially controversial, imposed 25% on steel and 10% on aluminium imports, sparking global trade disputes.
Mexico, a major US trade partner, had exemptions but faces scrutiny due to increased imports used to bypass taxes. New rules require proof of North American origin for steel and exclude smelting in China, Russia, Belarus, or Iran for aluminium.
American manufacturing groups support measures to counter China’s trade tactics and ensure fair North American steel trade.
Critics urge tougher actions, including reinstating tariffs on Mexican steel, amid ongoing trade policy shifts under Biden and election-driven pressures to protect domestic industries.
Credit : BBC
https://www.bbc.com/news/articles/cd1ede11d45o