Steel and Aluminum Tariffs Also Target China
The Donald Trump administration in the United States is increasing pressure on China. Bloomberg reported on the 23rd (local time) that the administration urged Mexico, which is in the midst of tariff negotiations, to impose tariffs on China and pushed for tariffs on steel and aluminum targeting China.
According to multiple anonymous sources, on the 20th, U.S. Secretary of Commerce Howard Lutnick met with a Mexican delegation including Marcelo Ebrard, Mexico's Secretary of Economy, urging that Mexico impose its own tariffs on Chinese imports to avoid the 25% tariff. The meeting was also attended by Jamieson Greer, the nominee for USTR representative, and Kevin Hassett, chairman of the White House National Economic Council (NEC).
The Trump administration announced on the 4th that it would impose a 25% tariff on Mexico and Canada and an additional 10% tariff on China, but ultimately decided to delay the tariffs on Mexico and Canada by one month. Claudia Sheinbaum, President of Mexico, sought to appease the Trump administration. To address the reasons cited by the U.S. for imposing tariffs?drug trafficking and illegal immigration?the Mexican government deployed 10,000 troops to the border area and strengthened controls on Chinese imports. Additionally, it recently halted large-scale investment projects by Chinese companies.
According to sources, the Mexican delegation made no promises regarding China, and both sides agreed to form a working group to address trade and tariff issues. U.S. and Mexican authorities did not respond to Bloomberg's request for comment.
As the U.S. plans to impose a 25% tariff on all steel and aluminum imports starting next month on the 12th, analysis suggests this is also a measure targeting China. Kate Calutkevich, former senior trade policy advisor at the White House National Economic Council (NEC) during Trump’s first term, stated this in an interview with Canadian CBC.
Former senior advisor Calutkevich said, "This reflects concerns that what the U.S. has done so far has not been sufficient to curb overproduction in this sector," adding, "These issues are almost entirely related to China, and China’s non-market policies and practices have enabled this global oversupply." He added that the reason President Trump pressures Canada and Mexico is to ensure the U.S. gets the best deal.
On the 21st, President Trump announced the America First investment policy memorandum. It encourages allied countries’ investments in strategic industries such as technology and energy while restricting Chinese investments in the U.S. and U.S. investments in China. On the same day, USTR announced plans to impose fees on international maritime transport services related to Chinese shipping companies and Chinese-made vessels.
Bloomberg explained, "The Trump administration has targeted China through a series of measures related to investment, trade, and other issues, increasing the risk of deterioration in U.S.-China relations."
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