Trade Cases
Commerce Inundated with Tariff Exclusion Requests
Written by Tim Triplett
May 10, 2018
Thousands of manufacturers, big and small, have filed paperwork with the Commerce Department requesting that their products be exempted from the 25 percent tariff on steel imports and 10 percent tariff on aluminum imports. Their argument is that their product must be imported because it is not produced in the United States in a sufficient and reasonably available amount or that it is essential for the nation’s security. Commerce is struggling to process the high volume of requests, leaving applicants to wonder when and how their fate will be determined.
One producer, which relies on raw materials from its parent company located outside the United States, filed its exemption request on in early April. Domestic competitors then had 30 days to comment. “The government now has 90 days to make a decision, but nobody knows what that process is about,” said a spokesperson for the filer. “The big question on the table at this point is, now what? If the U.S. industry says it can make the product, is that the end of it, or is there a verification process?”
A search of regulations.gov indicates that 2,527 requests for exclusions had been posted for public comment as of May 10.
A bipartisan group of 39 House members sent a letter to Commerce Secretary Wilbur Ross on May 7 urging him to streamline the review process and provide certainty and relief to the thousands of businesses impacted by the tariffs. Among their recommendations are for Commerce to allow trade associations to apply for exclusions for an industry, and to allow exclusions covering ranges of certain product dimensions with the same HTS code. They also urged the department to clear up misunderstandings over the forms, which contain confusing and contradictory requests.
“It is never going to work to have the U.S. government deciding who can import into this country. A lot of people feel this whole process is very difficult,” commented the spokesperson.
Tim Triplett
Read more from Tim TriplettLatest in Trade Cases
Fitch warns more tariffs will pressure global commodity markets
“New commodity-specific tariffs, mainly on steel and aluminum products, could widen price differentials and divert trade flows,” the credit agency forewarned.
Commerce increases import duties on Korean galv, plate
The Commerce Department is raising the import duties on imports of corrosion-resistant sheet and cut-to-length plate from Korea.
Leibowitz on trade: Why is protectionism so popular?
The world has had a few shocks recently. The CEO of a major health insurance company was gunned down in Manhattan. The 50-year Assad dynasty in Syria was pushed out less than two weeks after rebels started an offensive. And President-elect Trump is promising tariffs on everything a month before he takes office. But one shock has been taking place for a lot longer than the last few weeks. The 70-year consensus on trade hasn’t just been challenged. It’s been repudiated.
Ternium chief say Mexico tariffs ‘irrational’
Vedoya said the proposed tariffs are "an irrational measure that would harm both their own industry and ours."
Price on Trade: Trump tariffs are no negotiating tool – and could come at lightning speed
We focused on trade actions the second Trump administration might take in a prior column. Since then, we have learned more about the individuals who will be leading these efforts. Recent nominations reinforce the president-elect’s statements that tariffs will feature prominently in the second administration and that trade actions will be unveiled at lightning speed.