The US aluminum and steel industries proposed establishing a common tariff in the USMCA.

On the one hand, the Aluminum Association called for Mexico, the US, and Canada to harmonize tariffs at their borders to prevent aluminum from non-market economies from entering North America.

On the other hand, the American Iron and Steel Institute (AISI) proposed that the US steel industry establish a common external tariff on steel imports into North America.

Common tariff in the USMCA

Both proposals were sent in letters to the US Trade Representative (USTR) as part of the six-year review of the USMCA.

The AISI recommendation proposes a common external tariff for steel. It would apply to all imports of products arriving from outside the region. With this measure, the US industry seeks to contain global excess capacity. It also attempts to curb transshipment, circumvention, and tariff evasion.

At the same time, the Aluminum Association warns of a greater risk. It points out that the United States could lose more jobs, even more than the 6.4 million in the manufacturing sector. This would happen if companies continue to relocate operations to take advantage of subsidized Chinese aluminum.

The danger, according to the Association, is clear. The United States could be reduced to an assembly country. This would have adverse effects on investment, employment, communities, and national security.

The Aluminum Association offers the following recommendations:

• Mexico must establish an aluminum import monitoring system (SMI) as a prerequisite for continuing talks on aluminum.
• The three parties to the USMCA should harmonize tariffs at their borders to prevent aluminum from non-market economies from entering North America.
• The USMCA rules of origin should include restrictions on raw aluminum smelted or cast into metal in non-market economies or in a country subject to U.S. sanctions.
• Strengthen the rules of origin for aluminum (Chapter 76 of the Tariff Schedule) by applying regional value content requirements and restrictions on aluminum content from non-market economies.
• Reporting requirements for cast and smelted aluminum should be improved. 6. Continue to ensure the free flow of scrap (HTS 7602) within North America, while harmonizing restrictions on scrap exports.
• Use Section 232 to address imports of derivative products that incorporate items subject to U.S. antidumping and countervailing duty laws.

Rules of origin

The Association maintains that a coordinated trade strategy in North America is essential. It asserts that a regional approach to aluminum and other critical minerals will offer greater protection. Furthermore, it would help to contain the influx of heavily subsidized products from China.

At the same time, the Association recognizes the contribution of Canada and Mexico. It highlights that both comply with trade laws, rules of origin, and regional content value requirements. However, it insists on one point. Mexico and Canada must fully honor their previous commitments. Only then can they aspire to future collaboration that maintains preferential access to the U.S. market under the USMCA.