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
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.