Mexico Avoids Tariff by Agreeing to Monitor Exports

In response to U.S. complaints of recent surges, Mexico has agreed to strictly monitor exports of standard pipe, mechanical tubing and semifinished products through June 1, 2021. In exchange, the U.S. will maintain Mexico’s exemption from the Section 232 national security tariffs, said U.S. Trade Representative Robert Lighthizer in a statement on Monday. Section 232 imposes a 25 percent duty on imports of finished and semifinished steels from most other nations. 

As a result of consultations to analyze recent volumes of imports of the three steel products, the U.S. will maintain Mexico’s tariff-free treatment, said Mexico’s Secretariat of the Economy in a statement on Monday. For its part, Mexico will establish an export monitoring regime for these products until next June. Both countries will consult in December to assess the trade flow of these products in light of current market conditions