Biden tries closing trade loophole by imposing tariffs on China metal imports routed through Mexico

The Biden administration is seeking to close a trade loophole that allowed China to avoid paying U.S. tariffs on Chinese steel and aluminum by routing those imports through Mexico.

The administration announced on Wednesday that it would impose a 25% tariff on imports of Mexican metals that are partially made in China to stop China from circumventing tariffs on Chinese steel.

Mexican aluminum coming into the U.S. will be hit with a 10% tariff if it contains metal that has been smelted or cast in China, Belarus, Russia or Iran, according to Lael Brainard, the director of the White House's National Economic Council.

The announcement noted that Mexico will require importers to provide additional information about the origins of their steel products.

The Biden administration's decision is the latest in a long history of U.S. trade policy actions related to Chinese steel and aluminum.

According to the Tax Foundation, the U.S. Trade Representative under the Trump administration "began an investigation of China in August 2017, which culminated in a March 2018 report that found China was conducting unfair trade practices." 

Former President Trump made several trade policy changes related to tariffs on imports from China as part of his efforts to protect the U.S. steel industry as noted in the timeline published by the Tax Foundation.