Trade Cases

Commerce Recommends Section 232 Tariffs/Quotas on Steel Imports
Written by Tim Triplett
February 18, 2018
In a press conference on Friday, Commerce Secretary Wilbur Ross said his Section 232 investigation has concluded that steel imports do pose a significant threat to U.S. national security and he is recommending three possible remedies to President Trump that call for tariffs or quotas on foreign steel.
Those alternatives include:
- A global tariff of at least 24 percent on all steel imports from all countries, or
- A tariff of at least 53 percent on all steel imports from 12 countries (Brazil, China, Costa Rica, Egypt, India, Malaysia, Republic of Korea, Russia, South Africa, Thailand, Turkey and Vietnam) with a quota by product on steel imports from all other countries equal to 100 percent of their 2017 exports to the United States, or
- A quota on all steel products from all countries equal to 63 percent of each country’s 2017 exports to the United States.
Each of these remedies is intended to increase domestic steel production from its present 73 percent of capacity to approximately an 80 percent operating rate, considered to be the minimum rate needed for the long-term viability of the industry. Each remedy applies measures to all countries and all steel products to prevent circumvention, Ross said.
The tariffs and quotas would be in addition to any duties already in place. The report recommends that a process be put in place to allow the secretary to grant requests from U.S. companies to exclude specific products if the U.S. lacks sufficient domestic capacity or for national security considerations.
Responding to reporters’ questions, Ross acknowledged there is no language in the Commerce recommendations that would specifically exclude Canada or Mexico from trade action. But the president could opt to give special consideration to the NAFTA trading partners.
Ross said he would not be surprised if Section 232 is challenged in court, or by other World Trade Organization members, “but we believe this is a perfectly valid interpretation of national security” allowed under a WTO exception.
He downplayed the potential for steel tariffs to raise the price of consumer goods, using automotive as an example. Steel represents a small portion of the cost of a car, and the small percentage increase a tariff might cause would have little effect on the final price tag of the vehicle, he said.
He declined more than once to predict what President Trump may do with the Commerce Department’s recommendations. “He is the sole judge of that; it is not for me to speculate. He is not bound by these exact recommendations. He could do something totally different or do nothing if he so chooses,” Ross said.

Tim Triplett
Read more from Tim TriplettLatest in Trade Cases

SMU Survey: Less support seen for Trump tariff policies
Meanwhile, an increasing number think it's too early to say whether the penalties are going to bring more manufacturing to the US.

CRU: USW seeks exclusion for Canada from Trump’s tariffs
The union is also urging stronger enforcement against countries such as China which break trade rules, and a coordinated Canada-US strategy to protect union jobs across the North America

Price on trade: A lot happened last week – and it wasn’t all about tariffs
Should foreign investment be allowed to reshape the American steel Industry? Not to be lost in the recent on-again-off-again tariff frenzy, Nippon Steel’s proposed takeover of U.S. Steel has also found itself in President Trump’s crosshairs when it comes to trade and industrial policy. Nippon Steel initially announced its nearly $15-billion bid for U.S. Steel […]

Trump signs executive order aimed at making US shipbuilding ‘great again’
President Trump on Wednesday signed an executive order meant to breathe new life into American shipbuilding and curb Chinese dominance in the sector.

Trump still against selling USS to Japanese firm: Report
Despite ordering a new review of Nippon Steel’s bid for U.S. Steel, President Trump said he is still against selling USS to a Japanese company, according to media reports.