U.S. and Mexico implement new measures to combat tariff evasion on steel and aluminum imports

The United States and Mexico have introduced new regulations to tackle the circumvention of U.S. tariffs on steel and aluminum imports, particularly targeting products transshipped from China. The announcement made by the White House includes the implementation of a "melted and poured" standard, which mandates that steel products imported from Mexico must be melted and poured within North America specifically in Mexico, the US, or Canada to avoid a 25% U.S. tariff.

For aluminum, imports from Mexico will be exempt from a 10% tariff only if they do not include primary aluminum smelted or cast in China, Russia, Belarus, or Iran. Importers are required to provide a certificate of analysis to U.S. Customs and Border Protection to verify the origin of the metals.

This collaborative initiative between the U.S. and Mexico aims to strengthen the North American steel and aluminum supply chains and prevent the exploitation of Mexico's duty-free access under the North American trade agreement as a backdoor for Chinese products into the U.S. market. These steps come in the wake of increased U.S. concerns about China's industrial capacity and the potential for market disruption through excessive exports.