Trade Cases
No Product Exclusions for Quota Countries
Written by Sandy Williams
June 7, 2018
A new wrinkle has been revealed for those manufacturers seeking exclusions for steel and aluminum products from Brazil, South Korea and Argentina.
The three countries, which have agreed to quotas in lieu of tariffs, are not eligible for any product exemptions. A spokesperson for the Commerce Department confirmed the restriction in an email to Inside U.S. Trade:
“The Presidential Proclamations do not provide authority to grant product exclusions for quota countries. The President retains authority to adjust quotas as needed.”
If a company requires a certain product from a quota-designated country for its manufacturing process and that product has already reached its export limit, it could stall production.
Quotas have already been filled in 40 of the 54 subcategories for steel imports from Argentina and in 18 of the 54 subcategories for Brazil.
Although many analysts agree that allowing exemptions would defeat the quota’s intent, one former USTR official told Inside U.S. Trade that quotas are worse than tariffs for sellers.
“They are more restrictive than the tariffs because they are finite,” the source said. “They are very distorting because the first person to get to the customs window gets in. So, if your friend that exports the same thing gets in behind you, they are out of luck. This results in hoarding behavior, meaning a flood of exporters bringing in products and putting it in warehouses.”
Australia is also exempt from the tariffs, but terms of the deal between Washington and Australian officials are not yet public.
So far, Commerce has not approved or disapproved any of the more than 11,000 steel product exclusion requests it has received.
Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases
Coated steel trade case update: Postponements and new allegations
The steel industry may have to wait even longer for the initial duty determinations in the pending coated steel unfair trade investigations.
Price on Trade: Next six months will set course of trade for years to come
This may be the most consequential six months for trade policy in recent memory. The wait to see what form Trump's actions take is almost over.
Steel at top of Canada’s list for potential retaliatory tariffs
It feels a little like déjà vu: Trump threatens tariffs, Canada retaliates with tariffs of its own.
Trump refutes tariff pare-down report
The Trump administration may be considering alternative tariff plans, but Trump said the report is "Fake News."
Commerce says welded line pipe duties should continue
The US Department of Commerce has determined that anti-dumping and countervailing duties (AD/CVDs) on welded line pipe imports from China and Japan should remain in place for five more years.