Trade Cases

AISI: USMCA can handle US, Mexico trade dust-up
Written by Ethan Bernard
May 17, 2024
The USMCA should be strong enough to handle steel trade disagreements between the US and Mexico, according to the American Iron and Steel Institute’s (AISI’s) Kevin Dempsey.
“I think the basic structure set up in the USMCA is a good one,” Dempsey, AISI president and CEO, said at a press conference during AISI’s annual general meeting in Washington on Tuesday.
“Of course, it requires continued cooperation,” he added.
Recall that the US-Mexico-Canada (USMCA) trade agreement of 2019 removed Section 232 tariffs from Canada and Mexico. Tensions have increased as US industry and politicians have complained of a “surge” of Mexican steel imports.
The “Stop Mexico’s Steel Surge Act” was introduced into both Houses of Congress in March and seeks to reimpose Section 232 tariffs. Mexico has vowed to retaliate if such measures go through.
Dempsey noted that another current issue with Mexico is its import data. Where the steel comes from when it arrives to Mexico is not all made publicly available. Therefore, when that steel arrives in the US, it’s not clear how much of it is Mexican steel vs. steel from an unknown third country.
“So we need full cooperation with Mexico to allow all the mechanisms in the USMCA to be fully effective,” he said.
“We did add new provisions to incentivize increased customs cooperation between the three governments to address these types of trends,” he noted.
“We’re hoping that there will be a meeting of the North American steel trade committee later in June in Washington that will bring together the three North American steel industries and their government agencies,” Dempsey added.
Ethan Bernard
Read more from Ethan BernardLatest in Trade Cases
Price on Trade: The foolishness of free trade with controlled economies
It was only a matter of time before a shutdown happened. And, no, we aren’t talking about the federal government’s lapse in appropriations. On Oct. 9, Beijing announced a series of restrictions that will effectively shut down exports of rare earth elements, magnets, and certain downstream products vital to advanced manufacturing.
Trump pulls plug on trade talks with Canada after anti-tariff Reagan ad
US President Donald Trump took to social media late Thursday night to announce he was canceling trade talks with Canada.
Leibowitz: Renewed trade war with China over rare earths
On Oct.10, President Trump announced major increases in tariffs on Chinese goods. The trigger was a new regime of export controls on rare earth metals and products using those elements, including magnets, capital equipment, and catalysts for catalytic converters in cars and trucks.
Industry piles on new Section 232 steel derivative inclusion requests
The Department of Commerce received 97 submissions from producers, manufacturers, and groups seeking Section 232 tariff coverage for steel and aluminum derivative products.
Price on Trade: New EU steel tariffs don’t mean the US should weaken its stance
Any steel imports into the EU that exceed the new, lower quota level would be subject to a 50% tariff, which represents a major increase from the EU’s current 25% out-of-quota tariff. This move would largely align the EU’s steel tariff rate with Canada and the United States.
