Trade groups push for steel tariffs, no exceptions

The penalties are expected to be reinstated on Wednesday, March 12. 

In a letter dated March 10, the groups said they supported the first iteration of Section 232 implemented in 2018 during Trump’s first term. This move “allowed the American steel industry to restart idled mills, rehire laid-off workers and begin investing tens of billions of dollars in new and upgraded plants,” the groups wrote.  

However, as exemptions were granted for some countries and products, Section 232 weakened, they said. 

“The degradation of the Section 232 tariffs and out-of-control global excess steel production led to increases in steel imports and imports of downstream derivative products, once again threatening the viability of domestic steel producers and US national security.” 

“We are also concerned that certain countries have been working in concert with the Chinese government-owned steel industry to evade duties against China and ask that you consider taking swift additional tariff action against imports from these countries if import surges occur after March 12,” the letter continued. 

Last week, a similar action was taken by the chief executives of nine US steel mills, who wrote to urge President Trump to put into effect uniform 25% tariffs on steel and aluminum without exceptions.  

The Section 232 tariffs are separate from the 25% blanket duties that were slapped on Canada and Mexico last week, only to be rescinded days later.

SMU’s parent company, CRU Group, noted last week the goals of reducing the US trade deficit or re-shoring manufacturing will not be easy to achieve with tariffs alone.

“The Trump 1.0 tariffs appeared to have little positive effect on the US manufacturing, partly because they hurt export competitiveness,” CRU Group said. “Tariffs push up import costs for domestic manufacturers, making goods more expensive and squeezing real consumer demand. They also reduce competitiveness for exporters – particularly as tariffs tend to lead to a stronger dollar, and trade partners retaliate with their own tariffs against US goods.