Wednesday, June 6, 2018

The President’s Decision to End Temporary Steel/Aluminum Exemptions


By Michael Stumo, CEO of the Coalition for a Prosperous America

We support the Trump administration’s decision to end temporary exemptions from Section 232 steel and aluminum tariffs for Canada, Mexico, and the European Union. Prior to the 232 investigation, a series of anti-dumping and countervailing duty orders effectively prevented most Chinese steel from entering the U.S. directly.

China is notorious for its subsidized overproduction, transshipping through other countries, and deliberately mis-marking its product to circumvent trade laws. Other countries, including allies, have their own overcapacity, and have targeted the lucrative U.S. market. As a result, the U.S. produces less steel and aluminum, making it the only major steel-producing country that is a significant net importer. There are no countries with true exemptions. All countries are subject to either tariff or quota restrictions. Some countries negotiated quota agreements with the U.S. to avoid tariffs. They agreed to reduce their shipments to the U.S. as compared to recent years. [more...]

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