Trade Cases
Steel Product Exclusions Update
Written by Tim Triplett
May 10, 2018
This week, objections to steel product exclusion requests started to appear in the government website.
First, an update on exclusions:
7,561 comments filed (not all of these are exclusion requests; there are some general comments. However, most are likely exclusion requests or objections)
2,671 comments posted on the website, of which 21 are general comments. The rest (2,650) appear to be exclusion requests.
18 objections have been posted on the website to 10 exclusion requests.
Objections have been filed by U.S. Steel, Nucor, AK Steel and a couple of other companies. The objections claim that domestic steel producers can make products that were the subject of exclusion requests. We do not know yet whether Commerce will ask for additional information or not. One Nucor objection filed against three requests for stainless steel products frankly admitted that the company did not produce the particular product, but criticized the requesting party for not being specific enough about the reasons for asking for an exclusion.
“While Nucor acknowledges that it does not produce the products in question, the Department of Commerce (“Commerce”) should reject Midas’ requests for failure to provide a sufficient basis for granting an exclusion.”
Arguably, this objection should not be considered, because Nucor has no stake in whether the exclusion is granted or not on these particular products.
As yet we don’t know whether exclusion request that drew no opposition would automatically be granted. There are several requests with no objections and on which the comment period is closed. We should find out soon.
Another uncertainty is how requesters (and the public) will be informed of the disposition of product exclusion requests.
Members of Congress are hearing from constituents about the uncertainty and unfairness of the exclusion process. Both House and Senate letters have gone to the Commerce Department. Senators Ron Johnson (R-S.D.) and Claire McCaskell (D-Mo.) wrote a letter to Secretary Ross asking for detailed information supporting the “national security” finding that underlays the entire tariff and quota process. No response has been released to this letter as yet.
Country Discussions
June 1 is the deadline for the exemptions for the European Union, Canada and Mexico. There is no discernible progress on any negotiations for an alternative to the tariffs. For companies that rely on global supply chains, the tariffs may be superior to a quota deal such as the South Korean one, which has quotas that are “absolute.” If the quota limit for any steel product is reached, no more may come into the country for consumption.
Lewis Leibowitz
The Law Office of Lewis E. Leibowitz
1400 16th Street, N.W.
Suite 350
Washington, D.C. 20036
Phone: (202) 776-1142
Fax: (202) 861-2924
Cell: (202) 250-1551
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.