Bloomberg: US Asks Mexico to Impose Section 232 Tariffs to Jointly Contain Chinese Steel and Aluminum

According to Bloomberg on the 26th (Sunday), four知情人士 revealed that the US government is asking Mexico to follow its lead and impose Section 232 tariffs on steel and aluminum products originating outside North America, in a coordinated effort to restrict Chinese steel and aluminum from entering the North American market.

The sources said the move aims to preserve preferential trade treatment for steel produced in the US, Mexico, and Canada under the USMCA, while establishing a unified external tariff barrier against countries like China. This represents a major request from US trade officials to Mexico, which is currently considering accepting the arrangement. Discussions are ongoing regarding potential tariff rates and the specific scope of products to be covered.

One source indicated that the US hopes to reach a framework agreement with Mexico by the end of this year.

The bilateral talks come amid ongoing US-Mexico negotiations over the review of the USMCA. On July 1, the US government declined to renew the trade deal in its current form, opting instead for rolling negotiations to tighten regional rules of origin and limit China's role in North American supply chains.

Last week, US Trade Representative Jamison Greer and Mexican Economy Minister Marcelo Ebrard held the third round of bilateral talks in Mexico City, discussing issues including steel and aluminum, automobiles, economic security, labor, and agriculture.

The US and Mexican governments plan to meet again in Washington in September, warning that they must prevent non-member countries from 'free-riding' on trade benefits meant only for USMCA participants.

Some sources revealed that earlier this year, Mexico proposed significantly reducing steel imports from China as a measure to advance negotiations.

US trade restrictions on steel and aluminum are stricter than Mexico's. The US imposes a 50% tariff on basic steel and aluminum products from China and most other economies under Section 232 of the Trade Expansion Act of 1962, and a 25% tariff on derivative products.