Trade Cases
Tariff Reform Coalition: Time to Roll Back Section 232
Written by Tim Triplett
March 26, 2021
It’s time to roll back the Section 232 tariffs on steel and aluminum imports, and the Section 301 tariffs on imports from China, which are inflicting significant harm on U.S. businesses and workers, argued the National Foreign Trade Council on Wednesday in an appeal to the Biden administration. The NFTC’s briefing paper, “Why Recent Tariff Increases Harm Our Economy,” was signed by the Tariff Reform Coalition, a group of 37 manufacturing and agricultural trade groups in an appeal to President Biden to reconsider the high Trump-era tariffs.
Comments from Biden administration officials have been generally supportive of the tariffs and the American jobs they protect, but have not stated definitively if they will support the trade actions long term.
Opponents argue that the tariffs, and the retaliation they prompt by foreign governments, puts U.S. manufacturers, distributors and farmers at a disadvantage to foreign competitors and threaten far more jobs than they protect, at a time when American businesses are already struggling with the economic downturn caused by COVID-19.
“As American businesses and workers struggle with the effects of the pandemic, this is the worst possible time to turn inward and continue maintaining high trade barriers, including Section 232 and Section 301 tariffs,” the group wrote in its appeal. “The Section 232 tariffs on steel and aluminum should be removed as soon as possible. There are ample authorities under other trade laws, recognized as legitimate under WTO agreements if properly applied, to address problems of steel and aluminum subsidies or global overcapacity in a way that would minimize adverse impacts on the majority of U.S. companies and workers.”
Emotions are strong on both sides of the issue, with steel industry trade groups adamantly urging the administration to stay the course on Section 232, despite the record high steel prices in the U.S. The American Iron and Steel Institute and the Steel Manufacturers Association, declared their support this week of a new study by the Economic Policy Institute that found the Section 232 tariffs put in place in 2018 have been effective in countering trade-distorting practices by China and other nations and should be kept in place until a permanent solution to the chronic problem of excess global steel production capacity is achieved.
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.