Steel, manufacturing, and union groups divided on S232 tariffs

AISI

Kevin Dempsey, president and CEO of the American Iron and Steel Institute (AISI), supports President Trump’s removal of the Section 232 exclusion process.

In a statement, he said it had been “exploited as a loophole by foreign producers seeking to avoid tariffs.”

He noted that since their establishment in 2018, “the effectiveness of those measures has been eroded in recent years.”

Dempsey said overproduction by foreign mills has led to increased dumping of excess steel onto world markets. Additionally, there has been widespread transshipment and diversion of steel from third countries.

“AISI applauds the president’s actions to restore the integrity of the tariffs on steel and implement a robust and reinvigorated program to address unfair trade practices,” Dempsey added.

SMA

Likewise, Steel Manufacturers Association (SMA) President Philip K. Bell cheered President Trump’s actions.

On Wednesday, Bell said in a statement: “Today marks another major step forward that President Trump has taken to defend our national, economic and energy security and create more American jobs.”

Bell agreed that the tariffs have been diluted over time. He noted that with the revised steel tariff going into effect, “President Trump is boldly declaring that America will no longer be a dumping ground for cheap, subsidized foreign steel.

“President Trump is delivering on his promise to put America first and his actions today put the domestic steel industry in a position to again be the envy of the world,” Bell added.

CAMMU

The Coalition of American Metal Manufacturers and Users took a different line on the tariffs.

“The expansion of 25% tariffs on steel and the addition of new 25% tariffs on aluminum imports place US manufacturers at a tremendous disadvantage—including those who do not import these raw materials—by distorting the global competitive landscape,” the group said.

CAMMU underlined that the US economy is deeply integrated with Mexico and Canada. And “supply chains cannot be restructured overnight, leaving US companies in an untenable position.”

“The reality is that the US does not produce enough steel or aluminum to meet domestic demand, and new production facilities cannot be built instantly,” CAMMU said.

The group explained that removing exclusions from countries that formerly had quotas or tariff-rate quotas “could further strain supply chains, drive up costs, and exacerbate material shortages for US manufacturers.”

To support small and medium-sized companies, “a robust and efficient process must be implemented to include derivative products affected by these tariffs.

“Without a streamlined mechanism to address these downstream impacts, the tariffs could impede their ability to compete and sustain their businesses, in effect hollowing out the same US manufacturing companies the administration seeks to protect,” CAMMU concluded.

CAMMU represents 30,000 manufacturers who employ more than a million American workers.

Can Manufacturers Institute

The Can Manufacturers Institute (CMI) also pointed out some objections to the measures.

“While we support President Donald Trump’s efforts to address unfair trade practices, tariffs on steel and aluminum will increase prices for canned foods and beverages. Consumers will feel the inflationary impact of these tariffs at the grocery store,” CMI said in a statement.

The group noted that recent history has shown that trade protectionist measures have “serious impacts” on the US economy and domestic food security.

“Aluminum and steel tariffs place price pressures on American-produced goods by artificially and dramatically increasing the cost of critical production materials, making US-made food less competitive against foreign products,” CMI continued.

The group gave the example that since the 2018 tariffs, US tin mill steel producers shut down nine tin mill lines.

“Today, only three domestic production lines remain open in the United States, meaning American steel producers cannot meet US demand with the highest tinplate steel costs in the world,” CMI said. ”This opens the door for cheaper canned foods to flood the US market from China and other foreign competitors.”

Finally, the group called on “President Trump to provide targeted tariff relief.”

CMI is the national trade association of the metal can manufacturing industry and its suppliers in the US. It represents more than 28,000 employees with plants in 33 states, Puerto Rico, and American Samoa.

USW

Finally, the USW had harsh words regarding Trump’s tariffs.

On Tuesday, before the tariffs were officially implemented, the USW denounced “the latest escalation in Donald Trump’s reckless trade war.”

“These tariffs are nothing less than a potential industry killer,” said Marty Warren, USW national director for Canada. “It’s an economic attack on workers and our economic sovereignty.

“Trump’s protectionist charade is not about helping American workers but about using them as political pawns while jeopardizing jobs on both sides of the border,” he continued.

The USW called for the Canadian federal government to take immediate and aggressive action.

“Our government must fight back with the same force,” Warren stated.

He cited measures such as wage subsidies and prioritizing domestic procurement.

The union also urged the Canadian government to “expand and enforce retaliatory tariffs on US imports, targeting key industries and politically sensitive sectors.”

Also, it called for the implementation of “a robust ‘Buy Canadian’ strategy for all public infrastructure projects.”