July 16, 2018

Washington Wire: Tariff Exclusion Process Announced

03/19/2018

Tariff Exclusion Process Announced 

On Friday, March 16, the U.S. Department of Commerce released its process for how U.S. companies can now request an exclusion from the 232 tariffs taking effect at 12:01 AM on March 23, 2018. As of right now, the current rates are 25% on steel and 10% on aluminum, however, the government can increase those rates if it decides to exempt certain countries. Thus far, the government exempted Canada and Mexico from the tariffs but several other NATO and trade allies are expected to see some level of relief as well.

The tariffs do not have an expiration date and will remain in place until lifted by the President. The Commerce Department, in its recommendation reports, stated its goal is to reduce steel imports by 37% and have the domestic industry increase its capacity utilization to 80% from 73% currently and to 80% for aluminum from the domestic industry’s current 48% level.

This action by the federal government places a 25% tariff on flat, long, semi-finished, pipe and tube, and stainless steel; and a 10% tariff on articles of aluminum, including: plate; sheet, strip, and foil (flat-rolled products); wire; bars, rods and profiles; tubes and pipes; tube and pipe fittings; castings and forgings.

The U.S. lost 200,000 American jobs directly due to the 201 Steel Tariffs imposed in 2002 by President George. W. Bush and a recent study showed an expected 470,000 U.S. net jobs lost due to the current tariffs.

For more information on the exclusion process, click here

To see which steel and aluminum products are subject to 25% and 10% tariffs, respectively, see the Scope Excel spreadsheet with individual tabs at the bottom here

Manufacturers seeking a product exclusion can download the actual forms from the respective websites below:

Steel: https://www.bis.doc.gov/index.php/232-steel

Aluminum: https://www.bis.doc.gov/index.php/232-aluminum

You can let your members of Congress know how these tariffs will affect your business by sending a letter to Capitol Hill here.

For NTMA and PMA members who want more information on the tariffs, submitting an exclusion request, or those interested in speaking with the media on the impact of tariffs on your business, please contact info@metalworkingadvocate.org.