The canned food industry on June 12 urged President Donald Trump and Commerce Secretary Wilbur Ross to exclude tinplate steel from tariffs or other restrictions on such imports that could be taken pursuant to Commerce’s ongoing Section 232 steel investigation, the Can Manufacturers Institute said in a press release (here). Almost 20 groups representing the canned food industry asked the administration to exempt tinplate steel because it isn’t used in defense or national security applications. Tariffs or trade barriers would harshly impact those on governmental food assistance and diminish the value of taxpayer-funded federal food assistance programs, the release says. The White House and Commerce didn’t immediately comment. Commerce is expected to finish its Section 232 investigation this month (see 1705240034).
Section 232 Tariffs
The United States currently maintains a 25% tariff on steel imports and 10% on tariff on aluminum imports under Section 232 of the Trade Expansion Act of 1962. In 2018, the Trump administration imposed Section 232 Tariffs on steel and aluminum imports into the United States, citing national security concerns. The U.S. agreed to lift tariffs on Canada and Mexico after the signing of the United States-Mexico-Canada Agreement (USMCA), and reached deals with the European Union, Japan and other countries to replace the tariffs with quotas for steel and aluminum imports into the U.S.
There's still some question as to exactly how broad the Commerce Department's Section 232 investigations on steel and aluminum imports will be (see 1704200029 and 1704270024), members of the trade community said during a panel discussion May 3. The broadness of the administration’s definition of “national security” will determine the range of products covered by any safeguard measures, Allegheny Technologies Vice President Terrence Hartford said during a Kelley Drye event examining the first 100 days of Donald Trump’s presidency. Commerce Department officials are also under more pressure to finish antidumping and countervailing determinations early, said the panelists.
President Donald Trump signed a memo on April 27 that outlines the Commerce Department’s Section 232 investigation into aluminum imports (here), which started the day before (see 1704270024). The memo orders the investigation to take into account how the quantities, availability, character and use of those imports affect the U.S.’s ability to meet national security requirements, noting the close relationship between the nation’s economic welfare and national security. Should the investigation find that aluminum imports are threatening or impairing national security, the report must recommend actions and steps to adjust imports so they won’t have that impact, the memo said.
The Commerce Department on April 26 started an investigation into aluminum imports that could give President Donald Trump broad authority to level tariffs or quotas if it finds that the imports endanger national security, Commerce Secretary Wilbur Ross said during an April 26 briefing. “It is an investigation,” Ross said. “It is not one that has come to a conclusion. Therefore, we are not levying countervailing duties or taking any other action. This simply is starting the process and trying to accelerate it.” While aluminum imports “have been flooding” the U.S., the investigation lead to a decision on whether to respond with a trade remedy or some alternative, Ross said. Asked about the possibility of World Trade Organization actions taken in connection with the U.S. investigation, Ross said the administration will act “based on our view as to what are the proper rules, and our view as to who’s violating those rules. The WTO will do what they do.”
The Trump administration may launch Section 232 investigations that could result in additional tariffs on semiconductors, shipbuilding and aluminum, Commerce Secretary Wilbur Ross said, according to a report in The Wall Street Journal (here). Like an investigation on steel launched on April 20 (see 1704200029), the investigations would determine the effects of imports of each product and their effects on national security, potentially resulting in tariffs or other import and export restraints. A Section 232 investigation on aluminum is expected to be announced soon, CNBC reported (here). The Bureau of Industry and Security, which carries out Section 232 investigations, did not immediately comment.
President-elect Donald Trump's hard-line trade stance expressed throughout his campaign is seen by some as more of a negotiating tactic than a clear indicator of likely policy changes. While scholars still wonder how Trump would react if such talks don’t meet his goals, there's much debate as to what authority the president has to enact many of the Trump campaign promises. Among other things, Trump has said the U.S. should renegotiate NAFTA (see 1611100040), collect up to 45 percent tariffs to counter alleged Chinese currency manipulation (see 1601150029), and raise tariffs on companies that move operations overseas, withdrawing from the World Trade Organization if it disapproves of that policy (see 1607260043). Withdrawing from the WTO seems the least likely of those proposals, but a greater effort to engage China from a Trump administration is especially likely, observers said.