US and China Tighten Trade Controls Amidst Global Tensions

US and China Tighten Trade Controls Amidst Global Tensions

In a series of moves impacting global trade, both the United States and China have implemented stringent measures to regulate imports and counter "unfair" trade practices in their bilateral commerce. These actions reflect ongoing geopolitical tensions and their impact on international markets.

China's Steel and Aluminum Under US Scrutiny

According to Agence France-Presse, the US has announced new restrictions on steel and aluminum imports from Mexico, aimed at preventing goods originating from China from evading tariffs.

The Biden administration's move, according to AFP, seeks to protect against China's excess industrial capacity, which Washington claims leads to the dumping of goods at unfair prices in other markets. Bloomberg reports that steel imported from Mexico will only be exempt from tariffs if it is melted and cast in Mexico, the US, or Canada. Otherwise, a 25% tariff will be imposed. Similarly, aluminum imports from Mexico containing primary aluminum melted or cast in China, Belarus, Iran, or Russia will face a 10% tariff, as reported by AFP.

White House economic advisor Lael Brainard stated that these measures are necessary to close loopholes exploited by countries like China to avoid US tariffs. Brainard said, "The entry of Chinese steel and aluminum into the US market through Mexico avoids tariffs, undermines our investments, and harms American workers in states like Pennsylvania and Ohio."

These actions come as Biden seeks to garner support from voters in crucial swing states, including Pennsylvania, ahead of the upcoming elections. Scott Paul, president of the Alliance for American Manufacturing, emphasized that "China and other countries should not be allowed to exploit trade with our neighbors to avoid US trade enforcement."

Approximately 90% of Mexico's steel imports, totaling 3.8 million tons, are already processed within North America. The remaining portion, originating from countries like China, will now face these new restrictions. Out of 105,000 metric tons of aluminum imported from Mexico, 94% is processed in the US, Canada, or Mexico.