Biden imposes melted-and-poured requirement on Mexican steel

US President Joe Biden has ordered that steel items imported from Mexico must be melted and poured in Mexico, Canada or the US to be eligible for Section 232 exemptions. This effectively slaps a 25% tariff on any steel trans-shipped through Mexico that originated in China or other sources outside North America.

“In my judgment, these measures will provide an effective, long-term alternative means to address any contribution by Mexican steel articles imports to the threatened impairment of the national security by restraining steel articles imports to the United States from Mexico, limiting transshipment, and discouraging excess steel capacity and production,” Biden says in a White House statement seen by Kallanish.

In a presidential proclamation Wednesday, Biden says US domestic steel production utilisation rates remain below the recommended 80% threshold due to the effect of imports. The administration is monitoring unfairly traded foreign entries and circumvention of existing tariff orders.

Commerce Secretary Gina Raimondo has determined that “steel articles are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States,” the proclamation states.

In particular, “imports of steel articles from Mexico have increased significantly as compared to their levels at the time of Proclamation 9894,” which was issued by then-President Donald Trump in 2019.

Biden’s new duty order is effective immediately, the proclamation specifies.

The presidential proclamation states that importers will be required to inform US Customs and Border Protection of the melted-and-poured origin of their steel and derivative steel items. That rule will be implemented “as soon as practicable”.

kallanish.com