In a report done by the U.S. Commerce Department, Secretary Wilbur Ross has announced recommendations for tariffs or quotas on imported steel.
As per Section 232, due to claims of a threat to national security, the President of the U.S. can now choose to impose any tariffs or regulate imports. Ross is proposing three recommendations.
First, enforce 24% tariffs on all imported steel.
Second, increase tariffs to 53% on imports from 12 specific countries, including Brazil, China and Russia. Additionally, the U.S. would limit all other countries by imposing a quota based on how much steel they exported to the U.S. in 2017.
Lastly, limit all countries to 63% of the steel they exported to the U.S last year.
The CISC and the steel industry is monitoring this situation closely.
The mills in the U.S. understand the volume and value of the Canadian market and its partnership. Canada purchases most of its raw steel for construction from the U.S. voluntarily, even with the balance of trade in fabricated steel for construction between the two countries.
Should tariffs be levied against Canada, the steel industry will have to re-evaluate its partnership and consider increasing procurement of steel for construction from global sources.
President Donald Trump has until April 11, 2018 to decide the fate of international steel trading with the United States.
