Steel Products
Section 232 On Hold Until Tax Bill Complete
Written by John Packard
September 14, 2017
World Trade Online reported this morning that Commerce Secretary Wilbur Ross told a U.S. Senator the Section 232 review on steel will not be ready until after tax reform legislation has been completed. This is in line with what President Trump said in July when he told The Wall Street Journal, “We’re waiting till we get everything finished up between health care and taxes and maybe even infrastructure.”
Earlier this year, the understanding was that the review would be complete by the end of June.
When the end of June rolled around, the DOC and president found they were getting quite a bit of “push-back” on 232 and its potential outcomes. Some in Congress, the business community and other federal agencies, as well as trading partners, were upset with the potential damage a 232 decision might bring.
{loadposition reserved_message}
Under the Section 232 timeline, the DOC has until Jan. 14, 2018, to submit its report to the president.
World Trade Online has been reporting that Steve Bannon, in a speech in China given earlier this week, told the audience the administration was discussing “tariffs in the 25-35 percent range” on steel (World Trade Online, September 14, 2017).
Other World Trade Online sources spoke of there being “various drafts,” some recommending a combination of quotas and tariffs, with Canada, Mexico, the United Kingdom and Australia excluded.
If the steel industry has to wait until tax legislation has been completed, we may be waiting until late this year or early into 2018.
John Packard
Read more from John PackardLatest in Steel Products
Final Thoughts
The difference: The spat with Turkey was a big deal for steel. This time, the 50% reciprocal tariff for Brazil – if it goes into effect as threatened on Aug.1 – hits everything from coffee and to pig iron. It seems almost custom-built to inflict as much pain as possible on Brazil.
CRU: US rebar and wire rod prices rise alongside S232 increase
CRU Senior Steel Analyst Alexandra Anderson discusses current market and pricing dynamics for long steel products in the US.
CRU: Excessive global supply could hit rebar mill investments in US
Following the onset of the war in Ukraine in March 2022, concerns about import availability and expectations of rising demand from President Biden’s Infrastructure Bill pushed US rebar prices to record highs. In response, a flurry of new mills and capacity expansions were announced to meet the rise in demand from growth in the construction […]
Steel buyer spirits tempered by soft spot market conditions
Steel sheet buyers report feeling bogged down by the ongoing stresses of stagnant demand, news fatigue, tariff negotiations or implementation timelines, and persistent macroeconomic uncertainty.
CRU: US stainless prices to rise on expanded S232 tariffs
Stainless prices in the US market will rise, following price increases by major US producers. Our base case scenario incorporates higher US prices in the near term, despite the initial negative reaction by the market. US stainless prices will go up in 2025 H2 and will stay elevated in 2026 as tariffs on stainless […]