On Monday, July 8, the United States announced new tariffs on certain types of metal products from Mexico and China, accusing these countries of illegally helping their producers by providing "unfair" subsidies.
The decision came two months after President Donald Trump agreed to lift tariffs on steel and aluminum from Mexico and Canada after the three countries agreed on a revised free trade pact in North America.
The US Department of Commerce claims that imported steel used in construction was subsidized in China, Mexico and Canada, but in the case of Canada, the subsidies were small, so no reciprocal duties were applied.
The new duties are in response to a complaint filed in February by US steel manufacturers and the Chicago Institute for Steel Construction. Investigation began on January 4, 2019
In its preliminary findings, the Commerce Department found that Mexican and Chinese structural steel exporters receive subsidies ranging from 30.3 percent to 177.43 percent.
A statement from the US Department of Commerce said structural steel imports from China and Mexico totaled $ 1.5 billion in 2018.
Mexico's Undersecretary for Foreign Affairs for North America, Jesús Siad, said the new US measures target specific private companies in the country, not the entire industry, and that they do not jeopardize the ratification of the North American trade deal.
US customs agents will begin to levy import duties based on subsidy rates, but funds could be refunded if officials later revoke their decision. The Independent Commission on International Trade of the United States sometimes blocks the Department of Commerce action if it finds that American firms have not been affected by subsidies.
Last November, the United States, Mexico and Canada signed the USMCA, which will replace the North American Free Trade Agreement (NAFTA).
In May 2019, the US agreed to lift import duties on steel and aluminum from Canada and Mexico. These countries have also canceled their countermeasures.
