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
Price on Trade: The foolishness of free trade with controlled economies
It was only a matter of time before a shutdown happened. And, no, we aren’t talking about the federal government’s lapse in appropriations. On Oct. 9, Beijing announced a series of restrictions that will effectively shut down exports of rare earth elements, magnets, and certain downstream products vital to advanced manufacturing.
Trump pulls plug on trade talks with Canada after anti-tariff Reagan ad
US President Donald Trump took to social media late Thursday night to announce he was canceling trade talks with Canada.
Leibowitz: Renewed trade war with China over rare earths
On Oct.10, President Trump announced major increases in tariffs on Chinese goods. The trigger was a new regime of export controls on rare earth metals and products using those elements, including magnets, capital equipment, and catalysts for catalytic converters in cars and trucks.
Industry piles on new Section 232 steel derivative inclusion requests
The Department of Commerce received 97 submissions from producers, manufacturers, and groups seeking Section 232 tariff coverage for steel and aluminum derivative products.
Price on Trade: New EU steel tariffs don’t mean the US should weaken its stance
Any steel imports into the EU that exceed the new, lower quota level would be subject to a 50% tariff, which represents a major increase from the EU’s current 25% out-of-quota tariff. This move would largely align the EU’s steel tariff rate with Canada and the United States.