US president Donald Trump has imposed additional protectionist Section 232 import tariffs on certain steel and aluminum products, including some stamped auto parts.
The White House on 24 January said that Section 232 tariffs of 25pc for steel and 10pc for aluminum products will be imposed beginning on 8 February on a list of imported steel and aluminum items.
The Trump administration said imports of steel and aluminum derivative items have increased by significant amounts, circumventing the national security-based Section 232 steel and aluminum tariffs that were imposed on imports in March 2018.
Trump cited the inability of the US steel industry to maintain capacity utilization levels above 80pc for an extended period, which the administration said is needed for its long-term viability.
US steel capacity utilization averaged 80.7pc in 2019, and was estimated to be at or above 80pc for 37 weeks during the year, according to industry group the American Iron and Steel Institute (AISI). Capacity utilization rose to 82.7pc for the week ended 18 January.
Trump also cited the aluminum industry's lower-than-targeted utilization rate as a reason for applying the 232 tariffs to these products.
He added that while total imports have fallen, certain imports — such as for the newly impacted products — have increased, undermining the purpose of his original 232 tariffs to give US steel and aluminum producers a broader customer base.
Examples of steel and aluminum derivative product imports that increased include aluminum and steel bumpers and body stampings. Import volumes of those products for motor vehicles and tractors increased by 38pc from June 2018 to May 2019 compared with the same period the previous year.
Imports of steel nails, tacks, drawing pins, corrugated nails, staples and similar items increased by 33pc from June 2018 to May 2019 compared with the same period of the previous year.
Import volumes of aluminum stranded wire, cables, plaited bands, slings and similar articles increased by 152pc from June 2018 to May 2019 compared with the same period of the previous year.
The Trump administration has not yet released the specific Harmonized Tariff Schedule of the United States (HTSUS) codes related to the affected products.
The countries that are currently excluded from the tariffs, or that have quota systems, will not be subject to the expanded tariffs.
The 10pc aluminum tariffs apply to every country except for Argentina, Australia, Canada and Mexico. The 25pc steel tariffs apply to every country except for Argentina, Australia, Brazil, Canada, Mexico and South Korea. Argentina has import quotas for aluminum and steel, while Brazil and South Korea have quotas on steel.
Preliminary figures for total imports of steel products into the US for 2019 show imports fell by 17pc to 25.27mn metric tons (t) compared with final import figures of 30.57mn t in 2018, according to the US Department of Commerce. Imports of steel products totaled 34.47mn t in 2017.
Total imports of aluminum products through November 2019 were 6.64mn t, down slightly from 6.67mn t during the same period in 2018. Imports during the same period in 2017 were 7.35mn t.
By Rye Druzin
