As you may know, President Trump activated the Section 232 Investigation for Aluminum and Steel imports from the Trade Expansion Act of 1962, but what exactly does all this mean and what all does it efffect???
Section 232 Allows the Commerce Secretary to examine the steel imports and determine is they threaten the United States National Security. Section 232 is not called to mind very often, although does give Administration the authority to conclude wether the imports are making an undesirable impact on National Security. If they are then it could possibly result in a lead to new teriffs or quotas.
The Commerce has 270 days to investigate the situation and report his/her findings to the President of the United States. Once the President has been given the results of the Commerce’s findings the President has 90 days to make a decision on what actions will be made.
Results of Investigation
Commerce Secretary Wilbur Ross completed his findings and gave filed his investigations on January 11, 2018. He determined the numbers and conditions of the steel and aluminum imports poses a threat on the National Security. He determined this by the definition of Section 232.
??So Now What??
Secretary Ross Recommended the President to make one of the following remedies to tackle the problem of steel imports:
- A global tariff of at least 24% on all steel imports from all countries, or
- A tariff of at least 53% on all steel imports from 12 countries (Brazil, China, Costa Rica, Egypt, India, Malaysia, Republic of Korea, Russia, South Africa, Thailand, Turkey, and Vietnam) with a quota by porduct on steel imports from all other countries equal to 100% of their 2017 exports to the united states, or
- A quota on all steel products from all countries equal to 63% of each country’s 2017 exports to the United States.
President Trump Addresses the Solution
March 1, 2018 about 6 weeks earlier than expected, the President announced his plan of a 25% tariff on steel and 10% tariff on aluminum imports. His intentions are to increase domestic steel production from its present 73% of capacity to about an 80% operating rate.
The announcement has created a large amount of activity with our steel suppliers and we are remaining in constant contact with all of them. We inted to keep you informed of all updates.