CPA Says Mexican Steel Should Face 25% Tariff
The Coalition for a Prosperous America, an advocacy group aligned with President-elect Donald Trump's trade and manufacturing policies, is calling on his administration to reinstate Section 232 tariffs on Mexican steel. "If Mexico continues to breach its commitments, CPA urges the Trump administration to reconsider Mexico’s participation in USMCA altogether," the group wrote in a release issued Jan. 10.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
The group pointed to Nucor Corp.'s decision to close a wire rod rolling mill in Connecticut it bought in 2016. The company said it couldn't compete with low-priced imports from Canada, Greece, Mexico, Poland and Ukraine.
“Unchecked, duty-free imports from countries like Canada, Mexico, and Ukraine are gutting America’s steel sector and devastating good-paying American jobs,” CPA Chairman Zach Mottl said. President Joe Biden lifted tariffs on Ukrainian steel in 2022. "It is critical for the incoming Trump administration to act swiftly to address this crisis and implement a trade agenda that puts U.S. producers and workers first.”
CPA says that Mexican steel exports have surged far above its 2017 levels, and therefore, Mexico is breaching the agreement that exempted Canada and Mexico from steel and aluminum tariffs. Mexico says it has gained market share from other export sources.
The Biden administration did negotiate a change to the exemption, so that only steel melted and poured in Mexico would qualify. That change was put into effect last year (see 2407100005).