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

SMU Survey: Less support seen for Trump tariff policies
Meanwhile, an increasing number think it's too early to say whether the penalties are going to bring more manufacturing to the US.

CRU: USW seeks exclusion for Canada from Trump’s tariffs
The union is also urging stronger enforcement against countries such as China which break trade rules, and a coordinated Canada-US strategy to protect union jobs across the North America

Price on trade: A lot happened last week – and it wasn’t all about tariffs
Should foreign investment be allowed to reshape the American steel Industry? Not to be lost in the recent on-again-off-again tariff frenzy, Nippon Steel’s proposed takeover of U.S. Steel has also found itself in President Trump’s crosshairs when it comes to trade and industrial policy. Nippon Steel initially announced its nearly $15-billion bid for U.S. Steel […]

Trump signs executive order aimed at making US shipbuilding ‘great again’
President Trump on Wednesday signed an executive order meant to breathe new life into American shipbuilding and curb Chinese dominance in the sector.

Trump still against selling USS to Japanese firm: Report
Despite ordering a new review of Nippon Steel’s bid for U.S. Steel, President Trump said he is still against selling USS to a Japanese company, according to media reports.