10 Bipartisan Senators Introduce Bill to Restore 25% Tariffs on Mexican Steel
Ten senators have introduced a bill to require that the administration reinstate 25% tariffs on Mexican steel imports for at least one year, because they say that Mexico is not honoring the 2019 agreement that lifted Section 232 tariffs on Mexico and Canada. A companion bill was also introduced in the House.
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Sen. Tom Cotton, R-Ark., said, "Mexico’s violation of its 2019 agreement with the United States has released a surge of steel products into America that’s hurt our workers and made us less secure. It’s past time for more negotiation."
U.S. Trade Representative Katherine Tai has been emphasizing to her Mexican counterparts that Mexico needs to take "immediate and meaningful steps to address the ongoing surge of Mexican steel and aluminum exports to the United States and the lack of transparency regarding Mexico’s steel and aluminum imports from third countries" (see 2402230080). Neither her office nor the Commerce Department, which imposed the Section 232 tariffs and quotas, responded to a request for comment.
Co-sponsor Sen. Sherrod Brown, D-Ohio, said Mexico is cheating and added: "When Mexico breaks the rules they agreed to, the Administration needs to hold them accountable. This bill would take the action Ohio workers desperately need to level the playing field with Mexico."
Six other Republicans and two other Democrats in the Senate are co-sponsoring the bill, which says that the administration can only lift the 25% tariff on steel once the commerce secretary and USTR certify that Mexico has changed its policies to comply with the agreement, and that they are confident that Mexico will maintain those policies.
House co-sponsor Rep. Rick Crawford, R-Ark., said, "Mexico’s practice of steel dumping is a flagrant breach of our trade agreement and has caused significant harm to our steel industry. It’s time to put our foot down and put tariffs in place to prevent Mexico from flooding our markets and causing further damage to American steel manufacturers. His co-sponsor, Rep. Frank Mrvan, D-Ind., said Congress must "do everything we can to defend American steelworkers against unfair trade practices."
Mexican Economy Secretary Raquel Buenrostro said, after USTR complained about Mexican metal export surges, that Mexican steel exports are only 2.5% of the U.S. market, and U.S. steel exports are 14% of the Mexican market, and that if the U.S. reimposes tariffs on Mexican steel, Mexico will retaliate (see 2402280079). Last month, the Economy Ministry issued a news release that noted steel exports from Mexico fell by 28% last year, and steel imports from the U.S. into Mexico grew by 10%.
The Coalition for a Prosperous America said steel facilities in Ohio, Pennsylvania, Kentucky, Georgia, Florida, Texas, Arizona and Illinois are at risk due to Mexican steel imports, and quoted Zekelman Industries CEO Barry Zekelman, who says imported Mexican steel conduit made his Long Beach mill fail, putting 150 people out of work. Zekelman spoke to Brown before the bill was introduced.
The CPA said another Long Beach conduit factory is also closing and laying off 145 workers, also because of Mexican conduit imports.
CPA CEO Michael Stumo said: "We applaud Senators Cotton and Brown and Representatives Crawford and Mrvan for leading the introduction of this important legislation to fix Mexico’s continued blatant violation of the 2019 joint steel agreement. We applaud Ambassador Tai and her team for working diligently to bring the Obrador administration to the table. However, the White House has refused efforts to actually enforce the existing 2019 agreement and protect American industry and American workers. There is no justification for having these types of agreements if the White House fails to take action when other countries breach them."