U.S. Senators Warn of China Using Mexico to Bypass Tariffs

United States senators from both sides of the aisle are warning that China may use Mexico to bypass tariffs through an international trade agreement and are asking the government to impose tariffs on those imports to protect local industries.

In a letter sent to U.S. President Joe Biden, Senators Marco Rubio (R-FL), Sherrod Brown (D-OH), Mike Braun (R-IN), and Bob Casey (D-PA) warn about China’s tactic and ask for tariffs to protect the economy. The politicians claim that due to prior tariffs and China’s dwindling economy, various companies have moved their manufacturing facilities from Asia to Mexico. However, China is taking advantage of the nearshoring trend and has been moving its factories to Mexico.

“Notable examples of Chinese firms moving into Mexico are automakers,” the politicians stated. “Chery and MG have established facilities in Mexico, and BYD and SAIC are scouting potential sites.”

In the letter, they point to a second concern of Mexico surging its steel exports to the U.S. in violation of international trade agreements.

“We have written to you repeatedly about this surge, expressing our concerns that it has resulted in steelworkers losing their jobs and steel companies having no choice but to defer hundreds of millions of dollars in investment,” the senators stated in their letter.

They asked Biden to ensure that Chinese goods manufactured in Mexico are not exempt from tariffs under the USMCA (United States, Mexico, Canada Agreement) and to impose tariffs in Mexico’s steel imports.

“Stopping China’s USMCA abuse and Mexico’s steel surge is about protecting American industry and building economic resilience,” the senators stated in their letter. “It is also about enforcing our trade deals. What is the point of reaching trade deals if our leaders fail to enforce them? ‘Tough’ rhetoric will not serve American industry unless it is met with action.”

Ildefonso Ortiz is an award-winning journalist with Breitbart Texas. He co-founded Breitbart Texas’ Cartel Chronicles project with Brandon Darby and senior Breitbart management. You can follow him on Twitter and on Facebook. He can be contacted at Iortiz@breitbart.com. 

Brandon Darby is the managing director and editor-in-chief of Breitbart Texas. He co-founded Breitbart Texas’ Cartel Chronicles project with Ildefonso Ortiz and senior Breitbart management. Follow him on Twitter and Facebook. He can be contacted at bdarby@breitbart.com.