Trade Cases
Section 232 to be Lifted From Ukrainian Steel on June 1: White House
Written by Michael Cowden
May 31, 2022
The US will lift Section 232 tariffs from Ukrainian steel imports on Wednesday, June 1, at 12:01 a.m. Eastern Time, the White House said.
The waiver from the national security duties will remain in place until at least 11:59 pm Eastern on June 1, 2023.
“In light of the ongoing security discussions and significant disruption of Ukraine’s ability to produce steel, I conclude that Ukraine’s present situation presents a special case,” President Biden said in a proclamation adjusting the duties and dated Friday, May 27.
“I have determined to suspend the tariffs … for the import of steel articles and derivative steel articles from Ukraine for one year,” he said.
Biden’s proclamation comes after the Commerce Department announced on May 9 that the Biden administration would lift Section 232 from Ukraine.
President Biden said that the move was justified because Ukraine and the US have developed “a close security relationship,” because of the Russian Federation’s “unconscionable war” against Ukraine, and because maintaining the Ukrainian steel industry will provide an “economic lifeline” as the country recovers from the war.
Biden noted that Ukraine had expressed its willingness to work with the US to combat global excess steelmaking capacity. The president also said that the move shouldn’t disrupt the domestic steel industry because imports from Ukraine accounted for less than 1% of total steel imports to the US in 2021.
Section 232 tariffs were rolled out by the Trump administration in 2018. They have been kept in place by the Biden administration, although tariff-rate quota (TRQ) agreements to ease them have since been negotiated with the European Union, Japan and the United Kingdom.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in Trade Cases
Price on Trade: IEEPA tariffs head to the Supreme Court, DOJ ramps up trade enforcement
International trade law and policy remain a hot topic in Washington and beyond this week. We are paying special attention to the ongoing litigation of the president’s tariff policies and the administration’s efforts to heighten trade enforcement.
Mexico considers stiff tariffs for steel, autos, and other imports
Mexico is considering imposing steep tariffs on imports of steel, automobiles, and over 1,400 other products. Its target? Countries with which it does not have free trade agreements, mainly China, India, Thailand, and other South Asian nations.
Leibowitz: With ‘reciprocal’ tariffs struck down again in court, what happens next?
President Trump’s “reciprocal” tariffs under the International Emergency Economic Policy Act (IEEPA) were struck down again, this time on Aug. 29 by the Court of Appeals for the Federal Circuit (CAFC). The legal and policy mess continues, with the next stop being the US Supreme Court.
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.