The United States and Mexico are taking new steps to prevent China and other countries from working their way into Mexico’s supply chains to avoid paying Section 232 tariffs on steel and aluminum by implementing a new rules of origin.
Under the new rules for steel, imports from Mexico will be subject to the 25 percent Section 232 tariff unless it has been melted and poured in either Mexico, Canada or the United States.
A similar “smelt and cast” requirement is being put in place for aluminum from Mexico. Specifically, the imports must not have been smelt or cast in China, Russia, Belarus or Iran if they are to be exempt from the 10 percent Section 232 tariff.
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