Trade Cases
Borusan Mannesmann Seeks Tariff Exclusions on OCTG
Written by Tim Triplett
April 19, 2018
Pipe producer Borusan Mannesmann Pipe U.S. is among a reported 3,500 companies that have requested product exclusions from President Trump’s Section 232 steel tariffs. Borusan has filed for exclusions on 19 items, which covers the various diameters of its oil country tubular goods line.
Borusan Mannesmann, a subsidiary of the Borusan Group in Turkey, operates a pipe mill in Baytown, Texas. For some of its products, it sources green tubes from its parent in Turkey and finishes them into OCTG on its line near Houston. If its imported raw material is subject to a 25 percent tariff, said a spokesperson, the company will be put at a serious competitive disadvantage.
Borusan Mannesmann launched the $148 million pipe mill in 2014 with plans to expand it as business developed. “Then along comes this 25 percent tariff and suddenly they realize their plans to grow and hire more people are in jeopardy,” said the spokesperson.
Investment in the U.S. by foreign producers like Borusan creates jobs and boosts the economy just like investment by domestic mills. “We understand the tariffs are to help U.S. steel manufacturers. By the same token, allowing us to bring in a limited amount of product from our Turkish parent to supplement our U.S. production is also in the U.S. steel industry’s interest,” she added. “To me, it’s really about equality.”
The Commerce Department has thousands of exclusion requests to consider by a deadline of May 10. With less than a month for public comment and review, it’s hard to predict how the process will play out.
Borusan Mannesmann operates five plants on three continents with 1.4 million tons of annual production.
Tim Triplett
Read more from Tim TriplettLatest in Trade Cases
Market unfazed by US circuit court’s IEEPA decision
Repealing any reciprocal tariffs placed by President Donald Trump on US imports of direct reduced iron (DRI), iron ore, hot-briquetted iron (HBI), and pig iron would have only a nominal impact on the US steel market, market participants said.
ITC votes to keep HR duties after sunset review
The US government determined this week that hot-rolled steel imports from a handful of countries continue to threaten the domestic steel industry.
Steel Summit: Zekelman advocates for ‘Fortress North America’
Barry Zekelman has a unique vantage point from which to view today’s trade landscape. A Canadian national who owns operations in both the US and Canada, he has also had dialogue with both Canadian and American administrations.
Steel Summit: Execs urge clarity on trade/tariff policy, want stronger USMCA
Tariff policy dominated the discussion of the SMU Steel Summit trade panel on Tuesday afternoon. The message was clear: uncertainty is rattling the steel supply chain.
Final AD/CVD margins announced in coated steel trade case
The Commerce Department announced the final anti-dumping and countervailing duty (CVD) margins in the sprawling trade case investigating corrosion-resistant steel imports.