Mexico announced a nearly 80 per cent tariff on some steel imports on Thursday, following criticism from local producers that Chinese steelmakers have strangled their production.
The tariff applies to some Vietnamese exports of cold-rolled steel sheets, although if the groups can prove the steel comes from a country other than China, they are exempt from the tariff, according to a declaration from the economy ministry published in Mexico’s official gazette.
Vietnam’s largest steelmaker, Hoa Phat, is subject to a nearly 12 per cent tariff while Posco Vietnam will face a 26 per cent tariff, though the country of origin exemption also applies to them.
Joe Biden extends EU steel, aluminium tariff exemption for 2 years
Joe Biden extends EU steel, aluminium tariff exemption for 2 years
A number of nations have in recent years raised alarm at Chinese steel producers selling their surplus abroad at below-market rates, a practice known as dumping, with some attempting to circumvent “anti-dumping” measures by first shipping the steel to other countries.
The tariff published on Thursday brings a government anti-dumping investigation opened at the behest of steelmaker Ternium’s local unit nearly two years ago to a close. Ternium declined a request for comment.
Steel production in Latin America has dropped in recent years as imports have grown. The region is expected to produce 83 per cent of the steel it consumes this year, according to November data by regional association Alacero.
China bans new steel plants in ‘blue skies’ plan to cut pollution
China bans new steel plants in ‘blue skies’ plan to cut pollution
China is the region’s number one steel supplier, accounting for nearly a third of what is brought into Latin America, according to Alacero.
Brazilian steelmakers also have requested their country’s government impose a 25 per cent tariff on Chinese steel imports, though little action has been taken.
