Trade Cases

Biden again extends Ukrainian steel tariff suspension
Written by Laura Miller
June 4, 2024
President Joe Biden announced that the US will extend the suspension of Section 232 tariffs on steel products imported from Ukraine for another year.
The Biden administration first lifted the 25% Section 232 tariffs on steel imports from Ukraine after the breakout of war with Russia in 2022. The initial waiver was good for one year and was then extended last year. Thus, this marks the administration’s second extension.
“Ukraine’s steel industry continues to be significantly disrupted by the Russian Federation’s unjustified, unprovoked, unyielding, and unconscionable war against Ukraine,” Biden stated in a presidential proclamation.
He said the current disruption of Ukrainian steel production has been a part of broader security discussions between the US and Ukraine. Ongoing talks will likely include “alternative measures to prevent imports of steel from Ukraine from threatening the national security of the United States as Ukraine’s steel production recovers from the significant disruption caused by the war,” he noted.
This year’s announcement notes that the 232-tariff suspension also applies to steel articles imported from the European Union that are manufactured from steel melted and poured in Ukraine. Additionally, these steel articles will not count against the EU’s tariff-rate quotas, the proclamation said.
Steel articles from Ukraine that are eligible for the duty suspension must show a certificate of origin.
Will it help?
Although suspending the 232 tariffs is a nice gesture, it may do little to help Ukraine’s iron and steel industry.
As Stanislav Zinchenko, CEO of the Kyiv-based GMK Center, pointed out to SMU, almost all steel products that can be exported from Ukraine face antidumping duties (AD) when sent to the US.
The following Ukrainian steel products are currently subject to US AD duties: hot-rolled sheet, OCTG, rebar, wire rod, wire strand, and seamless pipe. There is also a suspension agreement in place on cut-to-length plate.
“So, we can not expect significant implications from extending the temporary suspension of tariffs,” he told SMU in an email.
Russia’s war against Ukraine is ongoing. Zinchenko said a “temporary export corridor” has softened logistical constraints for moving products out of the country. However, at present, the country’s “future potential for increasing [iron and steel] production is limited due to power outages and staff shortage connected to mobilization.”
According to US government data, US steel imports from Ukraine in the first four months of this year, at 46,550 short tons, were down 4% year over year. While pipe and tube shipments were down 65% y/y to 16,800 st, long product imports (mostly wire rod) spiked from less than 90 st to 28,500 st in the same time frame.

Laura Miller
Read more from Laura MillerLatest in Trade Cases

Price: Expect new trade shocks as Trump’s ‘reciprocal’ tariff negotiations continue
President Trump cast a wide net with the proposed, reciprocal tariffs. The negotiating stage will be critical to determining the success of his strategy. And for those suffering tariff whiplash, don’t expect the pace of change to slow down just because the reciprocal tariffs are entering a negotiating phase.

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.