Trade Cases
AIIS: Other Nations in Line for Higher Tariffs?
Written by Tim Triplett
August 19, 2018
Turkey may not be the last nation to face escalating tariffs from the Trump administration, according to the American Institute for International Steel’s (AIIS) interpretation of the presidential proclamation.
President Trump doubled the Section 232 duties on steel products from Turkey from 25 percent to 50 percent, effective Aug. 13. The proclamation behind the action indicates that capacity utilization rates in the domestic steel industry have not increased to the level recommended in the Commerce Department Section 232 report. It further notes that import levels have declined, but not to the extent necessary to result in the desired increase in domestic capacity utilization.
Although the original proclamation provided for identical duty rates for all covered countries, it was considered necessary to adjust the tariff for Turkey as “a significant step toward ensuring the viability of the domestic steel industry.”
Turkey is just one of 12 countries listed in the Commerce Department report that could be considered for higher duties should the president determine not to impose the same duty rates on all countries. The 12 countries listed for possible higher duty rates are Brazil, China, Costa Rica, Egypt, India, Malaysia, Republic of Korea, Russia, South Africa, Thailand, Turkey and Vietnam. Two of these (Brazil and Korea) are covered by quota agreements. The remaining nine countries, therefore, seem to be possible future targets for duty increases, said attorney Steven W. Baker, AIIS Customs Committee Chairman.
Although not stated in the proclamation, one justification given for the duty increase for Turkey is that the significant decline in the value of the Turkish lira against the U.S. dollar resulted in Turkish steel avoiding some of the duty effects felt by steel from countries with stronger currencies. How this may be applied to other countries with currencies declining against the dollar is unclear. Political controversies with Turkey [such as its arrest of an American pastor on terrorism charges] have also been cited as possibly having an effect on the determination. This has led to concerns about the possible use of the Section 232 duties for other than the claimed national security purposes, Baker noted.
Tim Triplett
Read more from Tim TriplettLatest in Trade Cases
Global steel forum sets 2026 framework deadline as US ups pressure on excess capacity
Global steelmakers sounded the alarm Friday over the deepening excess steelmaking capacity crisis. Ministers at the Global Forum on Steel Excess Capacity (GFSEC) in Gqeberha, South Africa, pledged to...
CRU: China’s indirect steel exports find new destination markets
The boom in China’s direct steel exports has not stopped this year, even with a rise in protectionist measures globally. The increase is driven by...
U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.
US and Canada expect positive outcomes from tariff negotiations
Canadian Prime Minister Mark Carney and US President Donald Trump told reporters at the White House on Tuesday that they’ll be formulating a trade deal that works for both nations.
Leibowitz: When the shutdown should end
There is no doubt that the current government shutdown reflects the vast divisions between the extremes of American politics, society, and even geography. Almost all Americans agree that government is necessary, but voters disagree...