Trade Cases
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Section 232 to be Lifted From Ukrainian Steel on June 1: White House
Written by Michael Cowden
May 31, 2022
The US will lift Section 232 tariffs from Ukrainian steel imports on Wednesday, June 1, at 12:01 a.m. Eastern Time, the White House said.
The waiver from the national security duties will remain in place until at least 11:59 pm Eastern on June 1, 2023.
“In light of the ongoing security discussions and significant disruption of Ukraine’s ability to produce steel, I conclude that Ukraine’s present situation presents a special case,” President Biden said in a proclamation adjusting the duties and dated Friday, May 27.
“I have determined to suspend the tariffs … for the import of steel articles and derivative steel articles from Ukraine for one year,” he said.
Biden’s proclamation comes after the Commerce Department announced on May 9 that the Biden administration would lift Section 232 from Ukraine.
President Biden said that the move was justified because Ukraine and the US have developed “a close security relationship,” because of the Russian Federation’s “unconscionable war” against Ukraine, and because maintaining the Ukrainian steel industry will provide an “economic lifeline” as the country recovers from the war.
Biden noted that Ukraine had expressed its willingness to work with the US to combat global excess steelmaking capacity. The president also said that the move shouldn’t disrupt the domestic steel industry because imports from Ukraine accounted for less than 1% of total steel imports to the US in 2021.
Section 232 tariffs were rolled out by the Trump administration in 2018. They have been kept in place by the Biden administration, although tariff-rate quota (TRQ) agreements to ease them have since been negotiated with the European Union, Japan and the United Kingdom.
By Michael Cowden, Michael@SteelMarketUpdate.com
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Michael Cowden
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