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
European Commission eyes stricter limit on tariff-free steel imports
The European Commmission is reducing the amount of tariff-free foreign steel that can enter the EU.
Trump says exceptions could exist on reciprocal tariffs
President Trump said on Monday there may be exceptions for some countries on reciprocal tariffs.
CRU: Countries start protecting steel in world of 25% US tariffs
These developments come at a time when the global trading system has been shaken up by US President Donald Trump’s greater use of tariffs, including employing Section 232 legislation to impose a 25% levy on steel from all countries to protect national security.
European Commission makes public steel action plan
The European Commission unveiled A European Steel and Metals Action Plan aimed at safeguarding the European Union’s steel and base metals production.
Trump says no exemptions on steel, aluminum tariffs: Report
President Trump said he has no plans to create exemptions on the recently enacted steel and aluminum tariffs, according to media reports.