Trade Cases
Appeals for Tariff Exclusions Already in the Works
Written by Tim Triplett
March 15, 2018
Companies that import steel products can apply for relief from President Trump’s tariff immediately, even before the Commerce Department issues formal procedures, recommends Washington trade attorney Lewis Leibowitz. “I see no reason to wait for detailed procedures to come out from Commerce. A letter to the Secretary should suffice to get started,” he said.
The Commerce Department is working on procedures for parties to apply for exclusion from the 25 percent tariff on steel imports signed by President Trump on March 8. The procedures are to be issued by March 18, 10 days from the president’s proclamation. The tariffs are scheduled to become effective on March 23.
The proclamation on steel sets out the following criteria for product exclusions: “[The Commerce Secretary] is hereby authorized to provide relief from the additional duties set forth in … this proclamation for any steel article determined not to be produced in the United States in a sufficient and reasonably available amount or of a satisfactory quality and is also authorized to provide such relief based upon specific national security considerations. Such relief shall be provided for a steel article only after a request for exclusion is made by a directly affected party located in the United States.”
There is some precedent for tariff exclusions. In the safeguard tariff regime of 2002-03, exclusions were granted on more than 400 products, Leibowitz said. Generally, duties were refunded retroactively after the exclusions were approved. “We don’t know if that will be repeated this time. The situation is very muddled.”
Parties seeking relief should base their claims on the key words in the proclamation: products not sufficiently available or of satisfactory quality in the U.S. Note that price is not mentioned as a criterion, Leibowitz said.
There are reports that companies and countries are already negotiating to be excluded from the tariffs, but no real sign of movement yet. Republican Sen. Jeff Flake of Arizona, an opponent of Trump’s tariffs on steel and aluminum, reportedly has introduced legislation to nullify them, though the bill’s text is not available, Leibowitz added.
Tim Triplett
Read more from Tim TriplettLatest in Trade Cases
Leibowitz: The blowback from Trump’s ‘Liberation Day’ tariffs has only just begun
Tariffs are taxes that the government collects. Funds are disbursed by acts of Congress. If domestic companies, including manufacturers, are to benefit from “protective” tariffs, they must raise their prices as well. Maybe not by the entire amount of the tariffs, but by some. Inflation will come.
Supply chains, end-users brace for impact from tariffs
Supply chains are working through what the tariffs mean for them
Commerce releases prelim anti-dumping duties in sweeping trade case targeting CORE imports
The US Commerce Department on Friday released preliminary anti-dumping margins in a trade case targeted imports of coated flat-rolled steel from 10 countries. Certain countries and mills were hammered while others were largely spared. Brazilian steelmaker CSN, for example, received a preliminary rate of 137.76%. Some Turkish mills – including Boreclik and ArcelorMittal Celik Ticaret – received no dumping margin at all.
CRU: Trump’s sweeping tariffs could derail the US met coal industry
Latest tariffs could lead to US metallurgical coal exporters (many already high-cost swing producers) being priced out of the market.
Tariff fallout: Canada strikes back, Stellantis idles, GM boosts production
Canada imposes auto tariffs, while automaker Stellantis temporarily idles some plants.