The Global Forum on Steel Excess Capacity presented a report last week in Paris agreeing to reduce steel capacity wherever necessary, keep overcapacity from reoccurring in the future and eliminate subsidies and other market distortions that contribute to overcapacity. “This sends a clear message: we will not repeat the costly mistakes of the past, and […]
The United States’ Section 232 steel tariffs are adding to the government coffers as the increase in calculated duties on steel rose by 4,300 percent in second-quarter 2018. Earlier this week, Steel Market Update was asked if we knew how much revenue has been coming from the Section 232 tariffs on steel. We were intrigued […]
The U.S. Court of International Trade has granted a request by the American Institute for International Steel for a three-judge panel to hear its challenge to the constitutionality of the Section 232 tariffs on steel and aluminum imports. In a June 27 motion, AIIS argued that a three-judge panel is supported by a specific federal […]
The Trump administration’s negotiating objectives for NAFTA were challenged by Democrats on the House Ways and Means Committee this week. A Sept. 10 letter to U.S. Trade Representative Robert Lighthizer questioned whether the bilateral deal with Mexico was “in the spirit of the Trade Promotion Authority.” The members said they were surprised by the formal […]
The Commerce Department published new regulations taking effect on Tuesday that make significant changes in product exclusion requests for the steel and aluminum tariffs. According to reports, the notice will be published in the Federal Register on Tuesday, Sept. 11. The revised rules allow for comments rebutting industry objections (with 7 days after the 30-day […]
Section 232 tariffs on steel and aluminum products from Canada and Mexico are back in the spotlight now that NAFTA talks are, hopefully, nearing an end. Steel associations from Canada and Mexico are calling for the tariffs to be terminated while the negotiations are under way. Mexican association Canacero has stated that a NAFTA deal […]
Canada is back in the NAFTA negotiations, but dispute settlement and cultural exemptions continue to be sticking points for a new agreement. Prime Minister Justin Trudeau has stressed that Canada will hold firm on requiring a dispute resolution mechanism like Chapter 19. “As I’ve said, we will not sign a deal that is bad for […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: I am just back from Atlanta, where I attended the SMU Steel Summit. I was pleased to be able to speak to many steel industry folks concerned about the steel tariffs, the China tariffs and […]
The U.S and Mexico announced on Monday a bilateral trade deal that could replace NAFTA if Canada does not agree to terms by the end of the week. President Trump said that he was ready to terminate NAFTA and replace it with the United States-Mexico Trade Agreement, calling the new name “elegant.” Mexico President Enrique […]
Mexican steel association Canacero said it has been called to Washington to discuss replacing the 25 percent tariff on steel imports to the U.S. with quotas. A spokesperson for Canacero President Maximo Vedoya verified the request by Washington in a statement to Reuters. “Talks are taking place now and the most important thing for the […]
The United States and Mexico have agreed on changes to the rule of origin for NAFTA automobiles during bilateral discussions. The percentage of North American content for NAFTA autos will be increased from 62.5 percent to 75 percent. In addition, 70 percent of steel, aluminum and glass used in production of autos must be sourced […]
A group representing the United States’ leading auto manufacturers, parts suppliers, auto dealers, parts distributors, retailers and vehicle service providers have formed the Driving American Jobs Coalition to oppose potential new Trump administration tariffs on imports of autos and auto parts. The coalition argues that imposing new auto tariffs will cause “massive job losses and […]
Commerce announced today an affirmative preliminary determination in the antidumping investigation of large-diameter welded pipe from Canada, China, Greece, India, Korea and Turkey. The merchandise covered by investigations is welded carbon and alloy steel pipe (including stainless steel pipe), more than 406.4 mm (16 inches) in nominal outside diameter (large-diameter welded pipe), regardless of wall […]
A letter last week from Tennessee manufacturers to Washington asks President Trump to consider the unintended consequences of Section 232 tariffs on steel-consuming companies. The group of six Dickinson Country manufacturers said they employ over 1,000 workers and depend on competitively priced steel to fabricate products that compete in a global marketplace. “We respectfully ask […]
Turkey may not be the last nation to face escalating tariffs from the Trump administration, according to the American Institute for International Steel’s (AIIS) interpretation of the presidential proclamation. President Trump doubled the Section 232 duties on steel products from Turkey from 25 percent to 50 percent, effective Aug. 13. The proclamation behind the action […]
Canada is considering provisional safeguard measures on seven classes of steel imports to prevent foreign steel shipments from being diverted into Canada as a result of U.S. trade actions. “We know that because of the unfair tariffs imposed by the United States, other countries will be seeking alternative markets for their steel products,” said Canadian […]
The U.S. trade situation is causing some consternation, according to analysts at CRU. During a webinar on Tuesday, which was made available to SMU member companies, analysts discussed the trade measures that have been instituted by the Trump administration and the potential impact on the U.S. and global economies. Steel and aluminum tariffs were imposed […]
Effective Monday, August 13, the Trump administration doubled the tariffs on steel imports from Turkey to 50 percent, stunning the market and setting off a wave of speculation on how this trade action may impact the steel and scrap markets in North America. A tweet from President Trump early Friday set the change in motion: […]
In a surprising tweet on Friday, President Trump announced his intentions to double the Section 232 tariffs on steel and aluminum from Turkey, raising the tax on imports to 50 percent for steel and 20 percent for aluminum. No word on when the change would take effect. “I have just authorized a doubling of Tariffs […]
The numbers 201, 232 and 301 are getting a lot of headlines recently. They are sections under three U.S. laws that President Trump has used to impose tariffs on a variety of goods and countries. Section 201 of the Trade Act of 1974 was used to place tariffs on imports of washing machines and solar […]
NAFTA talks are continuing this week with the contentious sunset clause under discussion. The topic has not been revisited in recent discussions as negotiators from the U.S. and Mexico tried to close less volatile chapters of the agreement. The sunset clause that would put a termination date on the agreement has been rebuffed by […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: News reports abound on U.S. companies that are hurting as a result of the Section 232 tariffs on steel and aluminum and the China Section 301 tariffs. Today, the Office of the U.S. Trade Representative […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: • Turkey Tariffs– President Trump tweeted on Friday that he “authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: While attending and giving a presentation to the SMU Steel Summit conference in Atlanta on Monday, word came that the U.S. and Mexico had reached a tentative deal on a revised trade agreement. President Trump […]
A major aluminum company has requested that Canada be exempt from Section 232 aluminum tariffs so that it can import alloy from its Canadian mills. Alcoa has three smelting facilities in Canada and three in the United States, as well as other global locations. The Baie-Comeau facility in Quebec produces specialty aluminum in 24-inch slabs, […]
Are imports of semifinished steel a threat to U.S. national security? Apparently, that depends on the political environment at the time. The controversy over the Trump administration’s Section 232 tariffs is not a new debate. Restrictions on steel imports were on the table in 2001 during the Bush administration. Contrary to today, the Commerce Department […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: Things are hectic these days. While the House has gone on recess until after Labor Day, the Senate is taking a mere two weeks off. Before taking their shortened break, the Senate passed the Miscellaneous […]
Earnings week for the steel industry revealed trade was foremost on the minds of steel executives. The steel mills expressed their approval of the administration’s tariff action that has boosted steel pricing and, along with higher demand, earnings for the second quarter of 2018. • U.S. Steel Corp. CEO David Burritt was a strong advocate […]
Will the World Trade Organization survive the current tumultuous trade environment where protectionism is supplanting cooperation? Some ambassadors to the WTO say that reform must happen soon or the multilateral system will collapse. “The world trading system is broken. The WTO is broken. There’s no reciprocity left,” said White House chief economic advisor Larry Kudlow […]
Lewis Leibowitz, trade attorney and contributor to Steel Market Update, offers the following commentary on the latest developments in Washington: Finally, a good day? President Trump and European Commission President Jean-Claude Juncker met Wednesday at the White House and issued a joint statement on their agreement to negotiate reductions in barriers between the U.S. and […]