AIIS, Manufacturers Denounce Tariffs

The American Institute for International Steel and the Coalition of American Metal Manufacturers and Users expressed their disappointment in the Section 232 announcement last night. AIIS President Richard Chriss and CAMMU issued the following statement:

We are disappointed that the president did not act last night to end the uncertainty in the metals market by ending the threat of tariffs on steel and aluminum. Our member companies are already seeing prices spike by more than 30 percent for steel and delivery times have more than tripled in many cases. That’s because a tariff—or the threat of a tariff—on the imports of a product not only raises the price of the imported product, but also allows the domestic industry to raise the price of its products. Domestic steelmakers do not produce enough steel to meet demand nor, in many cases, do they supply the type of steel needed for steel-consuming U.S. manufacturers. The result is that these manufacturers will pay more for steel and aluminum in the U.S. than anywhere in the world. U.S. manufacturers will therefore lose business to overseas competitors, who pay global market prices for these important inputs and can therefore manufacture and import end products and component parts with significant content of steel and aluminum into U.S. markets at a much lower cost than they can be made by U.S. manufacturers.