USMCA Triangular Trading Concerns Intensify as AISI and Aluminum Association Press for Tougher Rules

USMCA Triangular Trading Concerns Drive Call for Stronger Trade Enforcement

Industry leaders from the Aluminum Association and the American Iron and Steel Institute (AISI) called for urgent action on USMCA triangular trading concerns during testimony before a U.S. Trade Representative committee. Their statements highlighted a growing surge of metal imports entering Mexico and Canada from non-North American producers—particularly China—before entering the United States. As a result, both associations urged the Biden administration to tighten monitoring systems, harmonize tariffs, and strengthen rules of origin across North America.

U.S. steel and aluminum producers continue to emphasize the higher recycled content in domestic products. However, they argue that uneven enforcement under the USMCA now undermines that competitive advantage. Aluminum Association CEO Charles Johnson stressed that Mexico must finally implement the promised Aluminum Import Monitoring (AIM) system, which remains incomplete despite commitments dating back to 2019. He stated that a strengthened USMCA must secure a level playing field for all North American manufacturers.

Meanwhile, AISI CEO Kevin M. Dempsey criticized rising imports into Mexico and Canada, which he linked to global overcapacity and heavy foreign subsidies—especially from China. He noted that Section 232 tariffs reduced non-North American steel imports into the U.S., but inadequate parallel measures in Mexico and Canada created backdoor channels for triangular trading.

Why USMCA Triangular Trading Concerns Matter for Steel and Aluminum Markets

The second major issue centers on the sharp rise in subsidized Chinese aluminum entering Mexico, with aluminum coil imports climbing nearly 500 percent from 2017 to 2025. This volume already equals the capacity of a major U.S. rolling mill, raising alarms across U.S. manufacturing and metal recycling sectors. The associations argue that without unified tariffs and tracking systems, the region risks losing the original benefits of the USMCA.

Dempsey pressed for a “common external steel tariff” and a strict melted-and-poured rule of origin to prevent non-North American steel from slipping into regional markets while avoiding true tariff scrutiny. He insisted that no exemptions should exist for countries with separate free-trade deals, reinforcing the urgency of comprehensive and consistent enforcement.

USMCA Triangular Trading Concerns Shape Next Steps in the 2026 Review

The U.S., Canada, and Mexico now face a July 1, 2026, deadline for joint and individual USMCA reviews. The metals sector views this process as the critical moment to address longstanding enforcement gaps. However, leaders warn that delays or partial reforms could allow subsidized foreign metal to distort North American pricing, weaken domestic investment, and threaten regional supply-chain security.

SuperMetalPrice Commentary:

SuperMetalPrice analysts see USMCA triangular trading concerns as a defining issue for North American metals over the next two years. The enormous rise in Chinese aluminum entering Mexico signals that producers already exploit regulatory gaps, and steel flows show similar patterns. Stronger rules of origin, unified tariff structures, and shared monitoring tools will likely shape long-term competitiveness in both steel and aluminum markets. The 2026 review offers a rare opportunity for the region to align policies and shield domestic production from escalating global overcapacity.