On July 10, 2024, the United States and Mexico jointly announced measures to protect the North American steel and aluminum markets from unfair trade. Both countries will implement policies to prevent tariff evasion on steel and aluminum and undertake efforts to strengthen North American steel and aluminum supply chains. These efforts are intended to prevent transshipment of steel and aluminum articles to the United States that may not be of Mexican origin but have instead been shipped through Mexico to evade additional duties that are in place for such articles under Section 232 of the Trade Expansion Act of 1962.

The United States will implement both melt and pour requirements for certain steel imports from Mexico and smelt and cast requirements for certain aluminum imports from Mexico in order for those steel and aluminum imports to enter the United States tariff-free under Section 232. Under a Presidential Proclamation on Adjusting Imports of Steel Into the United States, President Joe Biden indicated that imports of steel articles from Mexico have increased significantly as compared to their levels in 2019 when Mexico and the United States last addressed such imports. See Thompson Hine Update of May 20, 2019. Accordingly, “the United States will implement a melt and pour requirement for imports of steel articles that are products of Mexico and will increase the section 232 duty rate for imports of steel articles and derivative steel articles that are products of Mexico that are melted and poured in a country other than Mexico, Canada, or the United States.” In order to be exempt from the Section 232 tariff rate of 25%, steel articles and derivative steel articles that are products of Mexico must be melted and poured in Mexico, Canada, or the United States. Importers of steel and steel derivative articles will be required to provide Customs and Border Protection (CBP) the information necessary to identify the countries where the steel used in the manufacture of steel articles imports and derivative steel articles are melted and poured.

Similarly, under a Presidential Proclamation on Adjusting Imports of Aluminum Into the United States, President Biden indicated that imports of aluminum articles from Mexico have increased significantly as compared to their levels in 2019, and found that “Mexico lacks primary aluminum smelting capabilities, and the country of smelt or country of most recent cast is unknown for a significant volume of aluminum imports from Mexico.” Accordingly, “the United States will implement a country of smelt and country of most recent cast requirement for imports of aluminum articles that are products of Mexico, and will increase the section 232 duty rate for imports of aluminum articles and derivative aluminum articles that are products of Mexico containing aluminum for which the reported primary country of smelt, secondary country of smelt, or country of most recent cast is China, Russia, … Belarus, or Iran.” In order to be exempt from the Section 232 tariff rate of 10%, aluminum articles and derivative aluminum articles that are products of Mexico must be accompanied by a certificate of analysis and must not contain primary aluminum for which the reported primary country of smelt, secondary country of smelt, or country of most recent cast is from these countries. Importers will be required to provide to CBP the information necessary to identify the countries where the primary aluminum used in the manufacture of aluminum articles imports from Mexico are smelted and information necessary to identify the countries where such aluminum imports are cast. 

To assist in this effort, Mexico announced that it will enhance transparency into the origin of its steel imports by requiring importers to provide more information about the country of origin of steel products by providing the country of melt and pour on mill test certificates. This adds to Mexico’s recent tariff increases on steel and aluminum from non-free trade agreement countries.

President Biden and the President of Mexico Andrés Manuel López Obrador stated that they will continue to work together to protect the North American steel and aluminum markets from unfair trade practices and further enhance the integration of North American industrial supply chains.