U.S. Department of Commerce (DOC) Secretary Wilbur Ross told the Senate Finance Committee today that the long-awaited Section 232 report on steel would be given to President Trump within a week. Ross told the Senators that the report would contain a “menu of options” on how to contain steel imports. In an article published by […]
The controversial Section 232 tariffs/quota expected to be proposed by the Trump administration against foreign steel imports elicited many strong opinions from respondents to SMU’s July 5 flat rolled steel market trends survey. Only 22 percent said they feel duties of 20 percent or more on foreign sources of supply would be good for their […]
A group of the nation’s most distinguished economists and former presidential economic advisors, including Ben Bernanke and Alan Greenspan, has sent President Trump a letter urging him not to pursue further tariffs on steel imports under Section 232. As the July 12 letter notes, the United States already has over 150 countervailing and antidumping duties […]
The agriculture industry challenged the use of national security as a reason to limit steel and aluminum imports, in a missive to Secretary of Commerce Wilbur Ross on Monday. A letter from 18 agricultural associations urged the administration to consider the consequences trade barriers may have on the food industry. “Many countries that export steel […]
Autoworkers in the U.S. and Canada say any renegotiation of the North American Free Trade Agreement must lead to higher wages for all three countries, reverse trade deficits with Mexico, and create new manufacturing jobs in the U.S. and Canada. In a joint statement, the United Autoworkers and Canadian association UNIFOR noted that the trade […]
This commentary by Daniel Pearson appeared in the June 2017 issue of The Conservative and is reprinted with permission. Daniel Pearson is with the Cato Institute where he is a trade specialist. Mr. Pearson is also the former chairman of the International Trade Commission (ITC). He will be one of our speakers at this year’s […]
Editor’s note: The opinions expressed here are those of trade attorney Lewis Leibowitz and do not necessarily reflect those of Steel Market Update. There will be more discussion about trade, trade suits and Section 232 in our upcoming SMU Steel Summit Conference, which will include presentations by Leibowitz and others on both sides of the […]
Australian steel and aluminum manufacturers were relieved to hear that Australia will be exempt from any U.S. import tariffs imposed under Section 232. Prime Minister Malcolm Turnbull and Finance Minister Mathias Cormann lobbied U.S. officials at the G20 meetings arguing that Australia was a strong ally and exports relatively little of its steel and aluminum to […]
U.S. bourbon exports are on the table for a retaliatory tax should Section 232 cut off EU steel exports. Bourbon, made almost exclusively in Kentucky, accounted for 20 percent of the $654 million of U.S. spirits sold to the European Union in 2016, according to a recent article in The Guardian. Officials confirmed that U.S. […]
The G20 Summit concluded Friday with some concessions made by members on trade, but still no deadline for the looming Section 232 steel investigation results. Pressure from the United States resulted in the G20 joint statement including a more strongly worded pledge for members to “fulfill their commitments on enhancing [steel] information sharing and cooperation by […]
The administrative law judge presiding over U.S. Steel’s Section 337 case against Chinese steelmakers has extended the deadline for fact discovery by three weeks. The close of discovery is now set for July 15, pushing back the evidentiary hearing from September to mid-October. In the International Trade Commission case it filed in April 2016, U.S. […]
A decision on Section 232 trade action is on hold until sometime after the G20 summit in Hamburg, Germany, this week. U.S. Department of Commerce officials have not announced a release date for the findings of the investigations on steel and aluminum imports and their impact on national security. The original due date was June 30th […]
Steel Market Update received a question from a large service center group regarding the use of the Section 232 process on steel and whether the due diligence being done now could be used “down the road” and applied against another steel product. Here is the question we received and the response from trade attorney Lewis […]
As if it is not enough to call every ton of imported steel “dumped,” “subsidized” or “unfairly priced,” steelmakers are now using a scare tactic by telling our politicians we need a strong domestic steel industry in the interest of national security. As a Bloomberg report pointed out, less than 3 percent of the steel consumed in the […]
Steel Market Update (SMU) Publisher John Packard and Executive Editor Tim Triplett were in New York City over the past two days meeting with manufacturing companies, service centers, steel mills, trading companies and members of the financial community associated with the steel industry. We found the first words off of everyone’s lips were “what do you think […]
New York State legislators approved an agreement this week prohibiting foreign steel to be used for New York roads and bridges. The “Buy American” legislation requires that seven identified state agencies purchase steel and iron manufactured completely in the U.S. for infrastructure projects valued at $1 million or more. Exemptions could be granted for specific […]
The United States’ NATO allies are worried about the upcoming decision on the Section 232 investigation of steel imports and their impact on national security. European officials warn that restrictions on EU imports could add to the anti-American sentiment already building in Europe over Russian sanctions, the withdrawal from the Paris climate accord and President […]
On Friday afternoon, Steel Market Update learned the U.S. Department of Commerce Section 232 briefings with Capitol Hill on steel remedies scheduled for Friday were cancelled. The reason for the cancellation, according to World Trade Online, was the lack of progress within the administration on its approach to the issue. The briefing was to have […]
One of the suggestions being floated within the steel industry is that Wilbur Ross will recommend some form of TRQ (trade rate quota) system whereby quotas are set up based on an average period of time. To help our readers imagine what that might mean we have taken two periods of time on galvanized steel […]
Steel buyers and traders of foreign steel who have orders on the books and vessels on the water need to be aware the Section 232 statute states that when the president of the United States receives the recommendation from the U.S. Department of Commerce, he then has 90 days to make an announcement. Once the […]
While the Trump administration has proposed a complete renegotiation of the North American Free Trade Agreement, the American Iron and Steel Institute (AISI), which represents domestic steelmakers, has affirmed its support for the continuation of NAFTA, albeit with some improvements and modernization to the 23-year-old trade pact. In a letter to the United States Trade […]
MSCI, Rolling Meadows, Ill., June 12, 2017— In written testimony on NAFTA renegotiation, the Metals Service Center Institute (MSCI) explained how uniquely successful the pact has been for North American manufacturing and urged the Trump administration to upgrade, but not endanger, the trillion dollar-plus annual trading relationship that NAFTA has established between the United States, […]
Steel Market Update received a series of questions regarding Section 232 and its potential impact on companies that fabricate steel components. We are sharing a portion of the responses to the questions from Daniel Pearson of the Cato Institute (former International Trade Commission chairman) and trade attorney Lewis Leibowitz. Following are questions we received from […]
China strongly condemned new antidumping and countervailing duties imposed Friday by the European Union on imports of hot-rolled flat steel from China. The EC applied definitive AD/CVD duties of up to 35.9 percent. Commerce ministry official Wang Hejun said in a statement on Friday, “The European Commission ignores the fact that China’s steel exports to Europe […]
Commerce Secretary Wilbur Ross is leaning towards a Section 232 finding that national security is threatened by steel imports. On Thursday, he told a Senate Appropriations subcommittee that he believes there is “a genuine national security issue that must be considered in this case.” Results of the Section 232 investigation are expected by the end […]
Mexico is imposing antidumping duties on imports of flat coated steel from China and Taiwan, including flat carbon steel or steel alloy, corrosion resistant steel, and products with a metallic or non-metallic coating, reports the Mexico Ministry of Economic Affairs. The petition was originally filed by Ternium and Tenigal in December 2015 and concluded on […]
Steel 232 Investigation—Update from the Front Lines By Lewis LeibowitzThe Law Office of Lewis E. Leibowitz To put the steel proceeding in context, I would like to acquaint you with a couple of other proceedings that are “proceeding” right now. We’ll see how all of these developments may fit together. First, there are important negotiations […]
Six leading steel groups in Canada, Mexico and the United States are today urging their respective governments to ensure that negotiations on the North American Free Trade Agreement (NAFTA) include key tenets that would result in growing consumption of steel in North America and increasing intra-NAFTA trade and market share for NAFTA producers. In a […]
The European Union and China failed to reach an agreement at the 19th EU-China Business Summit on the issues of trade investment, steel overcapacity, and the EU’s assertion of dumping from China. China pressed its demand to be recognized as a market economy and to receive equal treatment in antidumping investigations before the World Trade […]
The following article is the testimony Daniel Pearson provided to the U.S. Department of Commerce in writing as he was not selected to speak to the full panel during the open hearing on the subject of Section 232 held on Wednesday, May 24, 2017. Mr. Pearson will be a speaker at the 7th SMU Steel […]