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Tariffs, Tightened

Writer's picture: 389country389country


The White House yesterday released new rules strengthening tariffs on metals routed through Mexico. The rules build upon former President Donald Trump’s 2018 tariffs, which set a 25% tax on steel imports and a 10% tax on aluminum imports.


Mexico won an exemption to the tariffs in 2019; under the new rules, however, companies shipping steel and aluminum from Mexico will have to prove their origin. Officials say 13% of steel and 6% of aluminum imported from Mexico originate from outside of North America, including from China, which produces half of the world’s steel. The announcement comes after the Biden administration raised tariffs on $18B of Chinese imports earlier this year. Goods targeted included electric vehicles, solar panels, semiconductors, syringes, and medical gloves.


The announcement comes as the value of US-China trade has soared in recent decades, with imports surpassing $420B last year, up more than 300% from the turn of the century. Last year's imports nonetheless represented a 20% drop from 2022, as tariffs narrowed the trade deficit with China.

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