As Callanish learned from the Federal Register, more goods produced on the secondary market have been identified in the United States that will be subject to Section 232 tariffs on imports of goods derived from steel or aluminum.
Starting Monday, the U.
S. Department of Commerce added 407 codes to the list of derivative products included in the U.
S. Harmonized Tariff Plan (HTSUS). Steel and aluminum products are subject to the tariff rate under section 232, while non-steel and aluminum products will be subject to a reciprocal tariff rate. A 50% duty will be levied on imported steel.
Representatives of the US steel industry welcome the decision of the administration of President Donald Trump.
"The Steel Manufacturers Association (SMA) congratulates President Trump and the Department of Commerce on an effective inclusion process identifying additional steel-containing products to be covered by steel tariffs," SMA President Philip K. Bell commented in a statement released on Monday. "Steel tariffs are necessary for national security, which is ensured by a strong steel industry."
The Cleveland-Cliffs steel manufacturer from Ohio notes the inclusion of plates and cores made of electrical steel, as well as some exhaust gas parts made of stainless steel, in the list of derivative products.
"Cleveland-Cliffs thanks President Donald Trump and Secretary of Commerce Howard Latnick for taking decisive and concrete measures that will prevent the apparent circumvention of tariffs on stainless and electrical steel products," Cliffs President and Chief Executive Officer Lorenzo Gonzalves said in a press release. "Since we acquired AK Steel Corporation a few years ago, we have identified and condemned circumvention schemes across Mexico and Canada involving derivative products that use steel smelted and bottled outside of North America. This practice, which was adopted and supported by both Canada and Mexico, despite its inherent contradiction with the original intent of the USMCA trade agreement, eventually turned into a blatant tariff evasion ploy."
The Cliffs CEO adds that the new measures provide confidence that the American domestic market will be protected. It will not be undermined by the unfair trade in steel in the framework of derivative products. This allows the company to continue investing in the production of stainless and electrical steel.
The American Association of Ferrous Metallurgy (AISI) also appreciates the efforts of the Trump administration, emphasizing military readiness.
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