Trade Cases

Consumer Trade Groups 'Disappointed' in U.S.-EU Deal on S232
Written by Tim Triplett
November 1, 2021
The deal just announced between the U.S. and EU to replace the Section 232 tariffs with a tariff rate quota and to cooperate in reducing climate-changing carbon emissions was seen as a breakthrough by many – but not all. Trade groups representing steel consumers and producers from other parts of the world expressed “disappointment” that the deal swapped one trade restriction for another rather than simply opening the market to free trade.
“News of a U.S.-EU agreement to end the existing Section 232 steel and aluminum tariffs for a certain amount of imported steel is good news for U.S. manufacturers who continue to experience the highest prices in the world and long delivery delays. However, it is disappointing that the agreement will not completely terminate these unnecessary trade restrictions on our allies,” said a statement from the Coalition of American Metal Manufacturers and Users. CAMMU claims to represent 30,000 manufacturers who employ more than a million American workers.
CAMMU is concerned that replacing the tariffs with a TRQ will hurt its members because the threat of tariff reinstatement looms if passage of the infrastructure bill by Congress causes a new surge in steel and aluminum imports. “The U.S. domestic steel sector does not need protection from competition, and the U.S. should immediately begin negotiations to lift these damaging tariffs on our other close allies and trading partners,” CAMMU wrote.
“Saturday’s announcement that the United States and the EU have agreed to a tariff-rate quota system as a ‘pause’ in their 232-related steel and aluminum trade dispute…leaves much to be desired,” said Richard Chriss, president of the American Metals Supply Chain Institute. AMSCI, formerly the American Institute for International Steel (AIIS), is a lobbying group that advocates for open markets and free trade for the metals supply chain, including foreign mills.
By not terminating the tariffs across the board and withdrawing the administration’s determination that EU steel imports are a national security threat to the United States, the agreement leaves in place a regime that has raised the cost of steel used in the construction industry, in consumer goods and in energy production. Since their inception, Section 232 tariffs have hit American manufacturers particularly hard. Because so many American manufacturers use imported steel products as inputs in goods that they later sell to consumers here at home, or in products that are sold overseas, Section 232 tariffs are a “made in America tax,” adding to the inflation hitting Americans hard in the pocketbook, AMSCI said.
“The EU is not, and has never been, a threat to U.S. national security in any context or to any degree. The administration should end the Section 232 tariffs, period,” Chriss said.
AMSCI also renewed its call for Congress to enact legislation that ensures closer scrutiny of executive branch decisions to employ national security-based trade restrictions.
Tim Triplett, Tim@SteelMarketUpdate.com
Tim Triplett
Read more from Tim TriplettLatest in Trade Cases
Price on Trade: The foolishness of free trade with controlled economies
It was only a matter of time before a shutdown happened. And, no, we aren’t talking about the federal government’s lapse in appropriations. On Oct. 9, Beijing announced a series of restrictions that will effectively shut down exports of rare earth elements, magnets, and certain downstream products vital to advanced manufacturing.
Trump pulls plug on trade talks with Canada after anti-tariff Reagan ad
US President Donald Trump took to social media late Thursday night to announce he was canceling trade talks with Canada.
Leibowitz: Renewed trade war with China over rare earths
On Oct.10, President Trump announced major increases in tariffs on Chinese goods. The trigger was a new regime of export controls on rare earth metals and products using those elements, including magnets, capital equipment, and catalysts for catalytic converters in cars and trucks.
Industry piles on new Section 232 steel derivative inclusion requests
The Department of Commerce received 97 submissions from producers, manufacturers, and groups seeking Section 232 tariff coverage for steel and aluminum derivative products.
Price on Trade: New EU steel tariffs don’t mean the US should weaken its stance
Any steel imports into the EU that exceed the new, lower quota level would be subject to a 50% tariff, which represents a major increase from the EU’s current 25% out-of-quota tariff. This move would largely align the EU’s steel tariff rate with Canada and the United States.
