In accordance with the 2019 agreement, the United States has placed significant emphasis on closely monitoring the rise in steel and aluminum imports from Mexico. In 2022, steel imports from Mexico witnessed a notable surge of 72%, while rebar imports exhibited an astonishing increase of 3,000% compared to the historical average of 2015-2017. There are concerns that the Mexican steel industry may be exploiting its position within the agreement by exporting steel from countries subject to US Section 232 tariffs. Furthermore, there was an 86% increase in aluminum imports from Mexico in comparison to the previous year.
Steel and aluminum tariffs can be re-enforced
The reinstatement of tariffs is a potential course of action that could trigger negotiations and potential retaliatory measures if the upward trend in imports persists. According to the US-Mexico agreement, which aimed to lift the 25% steel and 10% aluminum tariffs, the importing country has the option to engage in consultations, taking market factors into consideration, if imports "significantly surpass historical trade levels over an extended period of time."
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