Trade Cases

Economists Advise Against Section 232
Written by Tim Triplett
July 13, 2017
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 on steel imports, including some as high as 266 percent. “Additional steel tariffs would actually damage the U.S. economy. Tariffs would raise costs for manufacturers, reduce employment in manufacturing, and increase prices for consumers. We urge you to avoid a policy that would likely incur greater economic and diplomatic costs than any conceivable national security gain,” its states.
The Trump administration says tariffs or quotas under Section 232 are needed to stop the dumping of unfairly traded imports from countries such as China, which are a threat to the domestic steel industry and thus national security. But, as the economists point out, the bulk of U.S. steel imports come from such countries as Canada, Brazil, South Korea and Mexico. “Additional tariffs would likely do harm to our relations with these friendly nations.”
Results of the Section 232 investigation were to have been completed by June 30, but further action was postponed until after the president met with other world leaders at the G20 summit in Germany last week. In addition to the former economic advisors, parties within the administration, Congress, and industry have criticized Section 232, making the likelihood and timing of its passage uncertain.
Click the image to read the economists’ letter in its entirety.

Tim Triplett
Read more from Tim TriplettLatest in Trade Cases

Global steel forum sets 2026 framework deadline as US ups pressure on excess capacity
Global steelmakers sounded the alarm Friday over the deepening excess steelmaking capacity crisis. Ministers at the Global Forum on Steel Excess Capacity (GFSEC) in Gqeberha, South Africa, pledged to...

CRU: China’s indirect steel exports find new destination markets
The boom in China’s direct steel exports has not stopped this year, even with a rise in protectionist measures globally. The increase is driven by...

U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.

US and Canada expect positive outcomes from tariff negotiations
Canadian Prime Minister Mark Carney and US President Donald Trump told reporters at the White House on Tuesday that they’ll be formulating a trade deal that works for both nations.

Leibowitz: When the shutdown should end
There is no doubt that the current government shutdown reflects the vast divisions between the extremes of American politics, society, and even geography. Almost all Americans agree that government is necessary, but voters disagree...