🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Mexican president downplays U.S. steel duties, says unrelated to trade deal

Published 2019-07-09, 10:53 a/m
© Reuters.  Mexican president downplays U.S. steel duties, says unrelated to trade deal

MEXICO CITY, July 9 (Reuters) - Mexico's President Andres Manuel Lopez Obrador said on Tuesday that U.S. duties on Mexican fabricated structural steel would not affect a new North American trade pact and had no relation to earlier tariff threats by U.S. President Donald Trump.

"These are isolated decisions," he said at a regular news conference, adding that he would meet with cabinet members later in the day to discuss the matter.

Under President Trump, the United States has repeatedly used tariffs to protect industry. Trump threatened to impose escalating blanket duties on imports from Mexican last month but removed the threat after reaching a deal on migration.

The United States lifted tariffs on steel and aluminum imports from Canada and Mexico in May imposed a year earlier in a national security investigation, in a deal hailed as removing a major obstacle to legislative approval for the United States-Mexico-Canada trade deal.

However, the U.S. Commerce Department on Monday said domestic producers were being harmed by imports of fabricated structural steel from China and Mexico, and that it would instruct the customs agency to collect cash deposits from importers of such steel. Commerce Department's action follows an investigation launched earlier this year that also included Canada. In its preliminary decision on Monday, Commerce did not impose duties on Canada.

Mexico's deputy foreign minister for North America, Jesus Seade, said late on Monday that the new duties affected only certain companies, not the steel industry as a whole and were of a much smaller scale than the earlier U.S. tariffs.

In 2018, the United States imported $722.5 million worth of fabricated structural steel from Canada, $897.5 million worth from China and $622.4 million worth from Mexico, according to the Commerce Department.

Commerce said it would collect duties from importers of Mexican fabricated structural steel based on what it considered to be subsidy rates of 13.62 percent on most producers and up to 74.01 percent for some companies.

The Mexican peso strengthened slightly on Tuesday after Lopez Obrador's comments and softer inflation data in June, up 0.08 percent against the dollar.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.