Trump administration allocates a list of 167 "derivatives" steel goods to be included in tariffs under section 232 in the United States.
several examples of the lower level of processing: welded corners, profiles and sections made of iron or steel; bridges and sections of bridges made of iron or steel; lattices, nets and fences from iron or steel wire, galvanized or covered with zinc; details for agricultural, garden or forestry; Modular building blocks made of steel and prefabricated buildings.
Trump claims that the increase in imports of some derivatives of steel products has led to a decrease in demand for goods produced by domestic steel manufacturers. He says that it is necessary to adjust the tariff so that it is applied to additional goods entering the processing. The presidential proclamation says that derivatives steel products can be taxed with an additional duties rate of 25% of the Advalore. Now the Minister of Trade has 90 days to establish the process of including additional derivatives of steel products in the scope of duties.
“Section 232 ... authorizes the president to take measures to adjust the import of goods and its derivatives, if the president agrees with the conclusion of the Minister of Trade that the goods are imported into the United States in such quantities or under circumstances that threaten national security,” - It is said in the document.
The proclamation from Tuesday includes an application that lists 167 goods according to their numbers in a harmonized tariff list of the United States.
“Unless otherwise provided in this Decree, the entire import of derivatives of the steel products specified in Appendix I to this Decree or in any subsequent application to this Decree is subject to an additional fee of 25% of the cost in relation to goods imported for consumption or seized from a warehouse for consumption, ”adds a presidential decree.
The document says that the initial tariff of 25%introduced in March 2018 has become an effective means of reducing imports, encouraging investment and expanding production by domestic steel manufacturers, and also minimized the threat of US national security. After the initial introduction of 25%tariffs, the loading level of steel capacities of the United States increased to more than 80%. Recently, the load level was 74-75%.
Some manufacturers in other countries allegedly go around measures, processing steel products that are subject to additional derivative steel products that were not included in additional duties announced in January 2020.
