Trade Cases

Section 232 Meets Resistance from Defense Department
Written by Sandy Williams
December 9, 2017
The Section 232 investigation into steel imports fails to meet approval by the Defense Department, according to Inside U.S. Trade sources.
After reviewing a draft report earlier this year, the Defense Department determined that trade restrictions proposed by Commerce Secretary Wilbur Ross would “unnecessarily vex U.S. allies.”
A source told Inside U.S. Trade that the administration has “politically boxed themselves in” because the Defense Department will not allow Section 232 to proceed without significant exclusions for U.S. allies
It is reported that remedy exclusions are being considered for Australia, Mexico, Canada, the United Kingdom, Japan and South Korea. Allies such as Japan are counting on a 2016 memorandum of understanding that waives restrictions on import of equipment produced in Japan for use in U.S. military applications.
Section 232 was delayed while Congress concentrated on tax reform. With that issue coming to a conclusion, Ross is being urged by the House Steel caucus to conclude the steel import investigation.
Sources have given conflicting reports on how much data has been collected for the investigation and under what methods. Democratic senators from Illinois sent a letter to Ross on Nov. 28 urging the conclusion of the investigation and a more transparent review process in the interim.
“It is important that our domestic stakeholders are made aware of the timing and process of your report, as well as your conclusions and recommendations, in as timely a manner as possible,” wrote Illinois Senators Tammy Duckworth and Richard Durbin. “Additionally, any recommendation by your administration should make sure that both U.S. steel manufacturers and their downstream consumers are able to create American jobs and increase domestic production as a result of your investigation.”
Ross told Sen. Bob Casey (D-PA) in September that the Section 232 report would not be issued until after tax reform legislation was passed. When Inside U.S. Trade asked Casey last week if tax reform was the official administration line on why the probe was delayed, Casey responded, “The line keeps moving.”

Sandy Williams
Read more from Sandy WilliamsLatest in Trade Cases

Steel groups voice different takes on US-EU trade deal
US and European steel trade groups were at odds over their reaction to the recent trade deal President Trump brokered with the EU.

Here’s what’s up next in the big coated steel trade case
Attorneys representing domestic petitioners and foreign respondent companies have been busy filing case briefings and making rebuttals as the corrosion-resistant steel unfair trade investigations begin to wind down.

Price: Which countries get a ‘zonk’ in Trump’s primetime ‘Let’s Make a (Trade) Deal’ show?
As the president’s August 1 tariff deadline approaches, the “Let’s Make a Deal” game show returns to primetime (the Monty Hall version, of course). As the administration begins rolling out trade deals, we are starting to see what’s behind door number one and who is getting a “zonk.”

Trump says Canada deal might not happen: Report
President Trump said a negotiated deal with Canada might not occur, and all existing tariffs, along with those set to take effect soon, will stay in place, according to media reports.

Steel trade groups applaud Trump’s S232 tariffs
Five trade organizations involved with North American steel have praised President Trump’s Section 232 tariffs on steel for helping the domestic industry.