Trump adds downstream goods to steel tariff order
The Trump administration is singling out a list of 167 “derivative” steel items destined for addition to Section 232 tariffs in the US, Kallanish learns from a White House proclamation on Tuesday.
A few examples of the downstream articles are welded angles, shapes and sections of iron or steel; bridges and bridge sections of iron or steel; grill, netting and fencing of iron or steel wire, plated or coated with zinc; parts for agricultural, horticultural or forestry machinery; modular building units of steel, and prefabricated buildings.
Increasing imports of certain derivative steel articles have depressed demand for goods produced by domestic steel producers, Trump argues. He says it is necessary to adjust the tariff to apply to the additional downstream goods. The presidential proclamation says the derivative steel articles may be subject to an additional 25% ad valorem rate of duty. The Secretary of Commerce now has 90 days to establish a process for including additional derivative steel articles within the scope of the duties.
“Section 232 … authorises the president to take action to adjust the imports of an article and its derivatives if the president concurs with the Secretary of Commerce’s finding that the article is being imported into the United States in such quantities or under such circumstances as to threaten to impair the national security,” the document states.
Tuesday’s proclamation includes an annex that lists the 167 goods by their numbers in the Harmonized Tariff Schedule of the United States.
“Except as otherwise provided in this proclamation, all imports of derivative steel articles specified in Annex I to this proclamation or in any subsequent annex to this proclamation, shall be subject to an additional 25% ad valorem rate of duty, with respect to goods entered for consumption, or withdrawn from warehouse for consumption,” adds the presidential order.
The document states that the initial 25% tariff imposed in March 2018 has been an effective means of reducing imports, encouraging investment and expansion of production by domestic steel producers, and minimised the threat to US national security. Following the initial imposition of 25% tariffs, the US steel capacity utilisation rate increased to above 80%. Recently, the utilisation rate has been 74-75% (see separate story).
Some producers in other countries allegedly have evaded the measures, processing covered steel articles into additional downstream steel derivative products that were not included in the additional tariffs proclaimed in January 2020.
John Isaacson USA
