Trade Cases

Line Pipe Producers Refute Challenges to Section 232 Tariffs
Written by Sandy Williams
June 12, 2018
Speaking in support of the Section 232 tariffs, the American Line Pipe Producers Association is challenging recent claims by U.S. pipeline developers that they are unable to source sufficient quantities of large-diameter line pipe in the United States.
The large-diameter welded pipe industry in the U.S. is operating at its lowest capacity in years—well under 40 percent—and, if given the opportunity, is “ready, able and eager” to supply pipeline operators, says ALPPA.
“U.S. producers can make virtually everything demanded for American pipeline projects, and they do so using domestic steel,” said Tim Brightbill, trade counsel to ALPPA. “Complaints by industry groups such as the Interstate National Gas Association of America (INGAA) and the Association of Oil Pipe Lines (AOPL) are completely unfounded. There is no reason why U.S. pipeline projects should not be using U.S.-manufactured large-diameter line pipe.”
A second allegation ALPPA refutes is that pipeline projects will be put on hold due to the high cost of Section 232 tariffs. Pipeline costs have been exaggerated, said ALPPA. Although tariffs may increase the price of imported pipe, large-diameter welded pipe accounts for only 20 percent of the total pipeline project cost, and pipeline projects continue to be highly profitable.
ALPPA notes that pipeline operators continue to rely on imports despite the tariffs, resulting in lost bids for domestic producers and further injury from “dumped and subsidized imports” of large-diameter pipe.
The Trump administration is correct in concluding that imports of steel pipe threaten U.S. national security and critical infrastructure, says ALLPA, pointing to affirmative preliminary determinations by the U.S. International Trade Commission in antidumping and countervailing duty investigations on pipe imports from Canada, China, Greece, India, Korea and Turkey.
“ALPPA strongly opposes requests from pipeline operators to be excluded from the steel Section 232 tariffs,” said the association.

Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases

Tariff fallout: Canada strikes back, Stellantis idles, GM boosts production
Canada imposes auto tariffs, while automaker Stellantis temporarily idles some plants.

Commerce tags UAE with ‘critical circumstances’ in CORE trade case, South Africa spared
The Commerce Department has made a preliminary determination that ‘critical circumstances’ exist for certain imports of corrosion-resistant (CORE) flat-rolled steel from the United Arab Emirates (UAE). Commerce decided that critical circumstances did not apply to CORE from South Africa. The department also found that critical circumstances did not apply to CORE from UAE producers Al-Ghurair Iron & Steel LLC and United Iron & Steel Company LLC.

Trump’s ‘Liberation Day’ brings 10% baseline tariffs; steel, aluminum, and autos/parts excluded
President Trump’s promised “Liberation Day” has arrived, with a 10% minimum tariff on imports. But there are some very important exceptions: The United States’ USMCA partners, Canada and Mexico, are excluded from the reciprocal tariffs for now. In addition, steel, aluminum, as well as autos and auto parts are excluded from the reciprocal tariffs. That’s […]

Price on Trade: Auto tariffs, auto parts, and Hyundai – a world of rapid changes
Trump's new auto tariffs will apply to passenger vehicles (including sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans), light trucks, and certain automobile parts (including engines and engine parts, transmissions and powertrain parts, and electrical components).

CRU: Canacero urges Mexico-US partnership to fend off Asian steel imports
Victor Cairo, head of Mexico’s steel sector body Canacero and CEO of ArcelorMittal Mexico, says he is confident negotiations between the Mexican and US governments planned for April 2 will lead to the creation of a regional block to substitute imports, especially from Asia.