US slaps ‘symbolic’ tariffs on China steel, aluminum

The United States has imposed tariffs on steel and aluminum products originating from China via Mexico, closing a loophole that had allowed Chinese metal suppliers to evade US tariffs since 2018.

Steel products from Mexico will face a 25% tariff, unless they are melted and poured in Mexico, Canada or the US, according to the new rules announced by US President Joe Biden on Wednesday.

Aluminum products from Mexico must not contain primary aluminum that is smelted or cast in China, Russia, Belarus or Iran, or they will face a 10% tariff.

Lael Brainard, director of the National Economic Council of the US, said Wednesday that the new rules are aimed at fixing a major loophole that the previous administration failed to address, and that countries like China rely on to avoid US tariffs by shipping their products through Mexico.

However, Chinese state media and commentators said the new US tariffs will only have a limited impact on China’s metal exports.

The newly announced tariffs are largely symbolic as the US is not a major market destination for Chinese steel and aluminum products, the Global Times, a mouthpiece of the Chinese Communist Party, said in a commentary on Thursday.

With its latest move, the Biden Administration is only demonstrating its efforts to politicize trade and economic issues, some experts said in the report.

The experts said only about 1% of Chinese steel products got shipped to the US last year while less than 3% of China’s steel products ended up sold to Mexico, Canada and the US.

Only 4.5% of China’s aluminum exports got sold directly to the US in 2023, according to a report published by the Shanghai Metals Market, a market research company.

The report said any new US tariffs will have only a