US to lift Section 232 steel, aluminum tariffs

The United States has agreed to lift tariffs on steel and aluminum from Canada and Mexico in exchange for tough new measures to prevent Chinese steel from entering the U.S. from either of those countries, Reuters reports. The deal avoids quotas on steel from Canada and Mexico, which the countries had opposed.

“American steel producers appreciate President Trump’s continued focus on leveling the playing field for our industry and, by enacting the Section 232 remedy, ensuring our national and economic security is not threatened by foreign imports,” says Thomas J. Gibson, president and CEO of the American Iron and Steel Institute (AISI), Washington, in response to the news of the tariff removal. “The Section 232 program has allowed American steel producers to restart idled mills, recall laid off workers and announce plans to invest in over 10 million tons of new steelmaking capacity.

“The new agreements with Canada and Mexico will enable us to cooperate further and take actions as needed to address transshipment, import surges and other related issues in the future,” he continues. “Given the continued problem of global excess steel capacity—estimated at nearly 500 million tons—we must remain strong in our resolve to ensure our trade laws are aggressively enforced.” 

Additionally, Heidi Brock, president and CEO of The Aluminum Association, Arlington, Virginia; Fernando Garcia, president of Mexico-based IMEDAL; and Jean Simard, president and CEO of The Aluminum Association of Canada released a joint statement on the quota-free removal of the tariffs on both steel and aluminum:

“We greatly appreciate the efforts of our respective governments to reinstate exemptions from Section 232 tariffs for North American aluminum. Removing tariffs, without quotas, is a major win for the entire industry and will support continued growth and investment throughout the region. We look forward to working with our governments to ensure that the implementation of this announcement guarantees robust, fair and rules-based trade of aluminum and aluminum products between our three countries. We are glad to see a commitment for improved coordination and monitoring within North America to safeguard against transshipment and the illegal evasion of duties. Our associations can play an important role assisting our governments in this effort by tracking and analyzing trade flow trends and industry data. 

“As noted in our joint letter in March, the free, open and well-monitored trade of aluminum is a critical element of a successful U.S.-Mexico-Canada Agreement (USMCA). We look forward to working with leaders in each of our countries in the coming weeks and months to help implement USMCA. The next step is to come together to tackle the fundamental challenge facing aluminum producers around the world—unfairly subsidized overcapacity in China.”

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