Trade Cases
Mexico Renews 15% Tariff on Steel Imports
Written by Sandy Williams
March 26, 2019
Mexico has renewed the 15 percent tariff on imports of iron and steel products from countries with which it does not have a free-trade agreement. The tariffs cover 186 products and were originally introduced in 2015 to protect domestic producers from Asian imports. The newest renewal cites the “crisis facing the international steel market caused by the reduction in the growth of demand and global production overcapacity.”
Said a presidential decree issued March 25:
“The persistence of the absence of conditions for distortion-free competition between the steel industries of different countries, combined with a fall in prices and a diversion of trade due to the increase in the world supply of steel, makes it necessary and urgent to establish an increase of the general import tax for 186 tariff fractions of steel products, of sheet-plate, roll-plate, cold rolled, hot-rolled laminate, wire rod, seamless pipes, welded pipes, coated sheet, rod and profiles.”
The tariffs were renewed in 2016, 2017 and 2018 and most recently expired on Feb. 1. The tariffs are within levels permissible under the World Trade Organization and will be in effect for 180 days.
“The steel industry acknowledges to the Government of Mexico the decision to renew the Decree of temporary tariffs on steel imports from countries with which we do not have trade agreements, in order to face the global crisis generated by the overproduction of steel, aggravated by the 25 percent tariffs that the United States unjustly imposed on our exports,” said Mexican steel association Canacero in a March 25 statement. “It is important to highlight that this successful decision does not impact the solid Mexican value chain since we have free trade agreements with more than 40 countries.”
Mexico is considering imposing more retaliatory tariffs on U.S. goods if a resolution to the U.S. Section 232 tariffs is not reached soon.
“The Mexican government’s position is that the application of the 232 on steel and aluminum is not justified,” Deputy Economy Minister Luz Maria de la Mora told reporters on Monday, while confirming that the U.S. has proposed imposing quotas in place of the tariffs.
“Quotas make no sense, they’re a way of managing trade,” said De la Mora. “What industry in North America needs is the elimination of this tariff and not managed trade.”
Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases
Steel imports slip 10% from August to September
September marked the lowest month for steel imports so far this year, according to preliminary Census data released by the Commerce Department.
Price on trade: Japan could help fund Nippon Steel’s acquisition of U.S. Steel
Earlier this month, Nippon Steel announced that it is applying for subsidies under the Japanese government’s Green Transformation Promotion Act to expand the company’s electric furnace steelmaking capabilities and to convert from blast furnace to electric furnace operations. As we have said before, transitioning from blast furnace- to electric furnace-based steelmaking is a good thing […]
CRU: What will the US elections mean for economic policy?
In this Insight piece, CRU economists explore the possible economic effects of Trump's and Harris' agendas.
Commerce adjusts duties on large OD welded P&T
The US Department of Commerce is conducting annual administrative reviews of antidumping and countervailing duty (AD/CVD) orders on certain imports of steel pipe and tube.
Canada announces remission process for Chinese steel tariffs
The Canadian government announced a remission process for businesses for recently announced tariffs on Chinese steel and aluminum products and electric vehicles .