Trade Cases
Senators Call for Review of Tariff Exclusion Process
Written by Tim Triplett
November 27, 2018
In response to widespread concerns about the pace, transparency and fairness of the Section 232 steel and aluminum tariff exclusion process, a bipartisan group of senators has requested that the Government Accountability Office conduct an independent review of the Commerce Department’s performance.
In a Nov. 26 letter to the GAO, U.S. Senators Doug Jones (D-Ala.), Pat Toomey (R-Pa.), and Tom Carper (D-Del.) called for the review. Commerce had received 49,301 exclusion petitions and had issued decisions for just 16,567 (34 percent) of them as of the end of October. In their letter, the senators called for GAO to investigate key questions about the current process, including the criteria used to approve or deny an exclusion petition, how to improve the pace of the process and the cost to taxpayers.
“The Commerce Department exclusion process for the Trump administration’s tariffs on steel and aluminum has generated a large backlog of petitions and has placed significant burdens on American businesses,” the senators wrote. “As a result of the Section 232 actions, U.S. trading partners have levied retaliatory tariffs on billions of dollars of American exports. In addition, several countries, including U.S. allies like Canada, Mexico and the European Union (EU), have filed disputes against the United States using the World Trade Organization (WTO) dispute mechanism.”
The Trump administration maintains that duties of 25 percent on steel imports and 10 percent on aluminum imports are needed to protect domestic metals production, which is essential for national security, from unfair foreign competition. The tariffs took effect in March on imports from most countries and in June on Mexico, Canada and the EU. Congress could use the findings of the GAO report to push for changes to the exclusion process next year.
Tim Triplett
Read more from Tim TriplettLatest in Trade Cases
Price on Trade: Auto tariffs, auto parts, and Hyundai – a world of rapid changes
Trump's new auto tariffs will apply to passenger vehicles (including sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans), light trucks, and certain automobile parts (including engines and engine parts, transmissions and powertrain parts, and electrical components).
CRU: Canacero urges Mexico-US partnership to fend off Asian steel imports
Victor Cairo, head of Mexico’s steel sector body Canacero and CEO of ArcelorMittal Mexico, says he is confident negotiations between the Mexican and US governments planned for April 2 will lead to the creation of a regional block to substitute imports, especially from Asia.
US chassis makers seek duties on imports from Mexico, Thailand, and Vietnam
Upon the request of US chassis manufacturers, the Commerce Department this week initiated investigations into the alleged dumping and subsidization of chassis imported from Mexico, Thailand, and Vietnam.
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.