NAFTA renegotiations are under way and automakers are concerned about changes to rules of origin for automobiles. Strengthening the rules could make U.S. auto and manufacturing sectors less competitive globally, warned speakers at a Motor & Equipment Manufacturers Association (MEMA) event on Wednesday. Representatives of American and international automotive producers charged that stronger rules of […]
Gilbert Kaplan, nominee for undersecretary for international trade at the Department of Commerce, was questioned today by the Senate Finance Committee on how he will approach trade issues for the nation. As undersecretary, Kaplan would be responsible for promoting U.S. trade and enforcing trade laws. Sen. Sherrod Brown (D-OH) pressed Kaplan on whether he supported […]
Steel Market Update (SMU) spoke with steel trading companies and steel mills late last week in order to gauge the “mood” of the steel suppliers. We found a mostly composed group who are looking at business for the long term (although their customers may be more fickle depending on the news of the day). A […]
At a Section 232 briefing to the Ways & Means Committee on Thursday, Commerce Secretary Wilbur Ross acknowledged the complexity of initiating broad trade action against imports of steel and aluminum. A “voluntary” agreement to address steel overcapacity was suggested that would allow countries to negotiate a solution to overcapacity and the resulting import surges. […]
Now that it appears the Trump administration will not be acting anytime soon on the much-anticipated Section 232 trade action, what are the implications for the steel market? Steel prices are likely to decline, say some observers, though how much and how quickly is open to debate. The Wall Street Journal reported this week that […]
We asked trade attorney Lewis Leibowitz what impact there would be on the Section 232 investigation and timing for decisions based on the comments made by President Trump of a delay in the process. Here is what Leibowitz told us earlier today: On Tuesday, July 25, President Trump revealed that he will indefinitely postpone a […]
Even conceding that a strong U.S. steel industry is vital to the nation’s security, it’s unclear whether America’s steelmakers really need an assist from the government in the form of new tariffs or quotas under Section 232. “Is the industry deserving of any kind of help? I believe you can make a good case that […]
Members of the House Ways & Means Committee will be briefed on the Section 232 steel investigation Thursday, July 27, according to Inside U.S. Trade. Commerce Secretary Wilbur Ross is expected to provide data on steel imports and the U.S. steel industry to the committee, similar to a briefing of the Senate Finance panel last […]
The American steel industry is facing a crisis that endangers U.S. national security, and it’s time for decisive action, says Philip Bell, president of the Steel Manufacturers Association in Washington, which represents the interests of EAF steel producers in the U.S. In the pending Section 232 investigation, SMA is advocating strongly for a new steel […]
Steel Market Update (SMU) asked trade attorney Lewis Leibowitz to update us on the status of the antidumping (AD) and countervailing duties (CVD) annual reviews. We were told that at the beginning of each month, the U.S. Department of Commerce publishes a notice of orders that are eligible for requests for administrative reviews. The notice […]
Trade talks with China this week ended in a stalemate after the U.S. pressed for “more fair” trade terms. The discussions were described as “a frank exchange” but little if any agreement was reached on bilateral trade and economic issues, according to a senior U.S. official. A press conference following the meeting was canceled and […]
United Steelworkers International President Leo Gerard says the Trump administration’s objectives for NAFTA don’t go far enough. In a statement following publication of the objectives by the U.S. Trade Representative, Gerard said that although the USW has long supported renegotiation of NAFTA, protection for workers in the U.S., Canada, and Mexico has been supplanted by corporate […]
President Trump kicked off “Made in America Week” on Monday with a display of items from 50 states that were made in the U.S.A. The photo-op event immediately garnered criticism of the Trump family businesses that rely heavily on China and other Asian countries to manufacture their goods. The NAFTA renegotiation objectives were released concurrently […]
What should the administration consider when evaluating the potential use of Section 232 to restrict steel imports? The U.S. Chamber of Commerce, which serves as a voice for business interests in Washington and represents more than three million businesses of varying size, sector and region, offered five questions that should be answered: Do All Steel […]
U.S. Department of Commerce (DOC) Secretary Wilbur Ross told the Senate Finance Committee today that the long-awaited Section 232 report on steel would be given to President Trump within a week. Ross told the Senators that the report would contain a “menu of options” on how to contain steel imports. In an article published by […]
The controversial Section 232 tariffs/quota expected to be proposed by the Trump administration against foreign steel imports elicited many strong opinions from respondents to SMU’s July 5 flat rolled steel market trends survey. Only 22 percent said they feel duties of 20 percent or more on foreign sources of supply would be good for their […]
A group of the nation’s most distinguished economists and former presidential economic advisors, including Ben Bernanke and Alan Greenspan, has sent President Trump a letter urging him not to pursue further tariffs on steel imports under Section 232. As the July 12 letter notes, the United States already has over 150 countervailing and antidumping duties […]
The agriculture industry challenged the use of national security as a reason to limit steel and aluminum imports, in a missive to Secretary of Commerce Wilbur Ross on Monday. A letter from 18 agricultural associations urged the administration to consider the consequences trade barriers may have on the food industry. “Many countries that export steel […]
Autoworkers in the U.S. and Canada say any renegotiation of the North American Free Trade Agreement must lead to higher wages for all three countries, reverse trade deficits with Mexico, and create new manufacturing jobs in the U.S. and Canada. In a joint statement, the United Autoworkers and Canadian association UNIFOR noted that the trade […]
This commentary by Daniel Pearson appeared in the June 2017 issue of The Conservative and is reprinted with permission. Daniel Pearson is with the Cato Institute where he is a trade specialist. Mr. Pearson is also the former chairman of the International Trade Commission (ITC). He will be one of our speakers at this year’s […]
Editor’s note: The opinions expressed here are those of trade attorney Lewis Leibowitz and do not necessarily reflect those of Steel Market Update. There will be more discussion about trade, trade suits and Section 232 in our upcoming SMU Steel Summit Conference, which will include presentations by Leibowitz and others on both sides of the […]
Australian steel and aluminum manufacturers were relieved to hear that Australia will be exempt from any U.S. import tariffs imposed under Section 232. Prime Minister Malcolm Turnbull and Finance Minister Mathias Cormann lobbied U.S. officials at the G20 meetings arguing that Australia was a strong ally and exports relatively little of its steel and aluminum to […]
U.S. bourbon exports are on the table for a retaliatory tax should Section 232 cut off EU steel exports. Bourbon, made almost exclusively in Kentucky, accounted for 20 percent of the $654 million of U.S. spirits sold to the European Union in 2016, according to a recent article in The Guardian. Officials confirmed that U.S. […]
The G20 Summit concluded Friday with some concessions made by members on trade, but still no deadline for the looming Section 232 steel investigation results. Pressure from the United States resulted in the G20 joint statement including a more strongly worded pledge for members to “fulfill their commitments on enhancing [steel] information sharing and cooperation by […]
The administrative law judge presiding over U.S. Steel’s Section 337 case against Chinese steelmakers has extended the deadline for fact discovery by three weeks. The close of discovery is now set for July 15, pushing back the evidentiary hearing from September to mid-October. In the International Trade Commission case it filed in April 2016, U.S. […]
A decision on Section 232 trade action is on hold until sometime after the G20 summit in Hamburg, Germany, this week. U.S. Department of Commerce officials have not announced a release date for the findings of the investigations on steel and aluminum imports and their impact on national security. The original due date was June 30th […]
Steel Market Update received a question from a large service center group regarding the use of the Section 232 process on steel and whether the due diligence being done now could be used “down the road” and applied against another steel product. Here is the question we received and the response from trade attorney Lewis […]
As if it is not enough to call every ton of imported steel “dumped,” “subsidized” or “unfairly priced,” steelmakers are now using a scare tactic by telling our politicians we need a strong domestic steel industry in the interest of national security. As a Bloomberg report pointed out, less than 3 percent of the steel consumed in the […]
Steel Market Update (SMU) Publisher John Packard and Executive Editor Tim Triplett were in New York City over the past two days meeting with manufacturing companies, service centers, steel mills, trading companies and members of the financial community associated with the steel industry. We found the first words off of everyone’s lips were “what do you think […]
New York State legislators approved an agreement this week prohibiting foreign steel to be used for New York roads and bridges. The “Buy American” legislation requires that seven identified state agencies purchase steel and iron manufactured completely in the U.S. for infrastructure projects valued at $1 million or more. Exemptions could be granted for specific […]