Coalition calls for immediate end to US Section 232 tariffs

The Coalition of American Metal Manufacturers and Users (Cammu), along with more than 300 US manufacturing businesses, asked US President Joe Biden to immediately terminate the Section 232 steel and aluminium tariffs in a letter dated Thursday May 6.

“It is businesses manufacturing in America such as ours who pay the tariffs on imports, and it is our businesses and employees who suffer when our product cannot compete with overseas manufacturers because the US is an island of high steel and aluminium prices,” the letter stated. “Producers today simply cannot meet demand, and the tariffs create a tax that only manufacturers in the US must pay.”

Notably, Fastmarkets’ daily steel hot-rolled coil index, fob mill US reached an all-time high of $75.43 per hundredweight on Friday April 30; the index was last calculated at $74.09 per cwt ($1,481.80 per short ton) on Wednesday May 5.

Fastmarkets’ aluminium P1020A premium, ddp Midwest US hit its own all-time high of 26-27 cents per lb on April 30, up by 8.16% from its previous record of 24-25 cents per lb and up by 60.61% from 16-17 cents per lb at the start of March.

Those companies are “currently struggling to meet demand and stay competitive due to supply shortages, long lead times and artificially high prices for their key inputs,” Cammu noted. Indeed, the letter pointed to lead times that have stretched to 16-20 weeks, or even longer, compared with typical delivery times of four to six weeks.

“On some products, American businesses pay 40% more for similar steel compared to their European counterparts - an unsustainable situation for any US employer,” according to the letter.

Therefore, a continuation of the Section 232 tariffs would put a drag on manufacturing companies and stifle growth while the US economy attempts to recover from Covid-19 pandemic, Cammu claimed.

“Without termination of the tariffs, this situation will worsen if Washington moves forward with an infrastructure bill to invest in America, as these projects will create more strain on domestic steel and aluminium supplies, causing delays in construction and risking manufacturing jobs,” the letter said.

The coalition has previously called for the termination of the trade measures, and argued in March that US Commerce Secretary Gina Raimondo was mistaken about the success of the Section 232 steel and aluminium tariffs.

What to read next
Following a six-week consultation period, Fastmarkets can confirm it will amend the calculation method for all the average functions on the Fastmarkets platform from Wednesday March 1, 2023.
Tesla expects tax credits from the US Inflation Reduction Act (IRA) to be worth $150-250 million per quarter this year to the automaker and increase through the year as its car volumes grow, according to the company’s chief financial officer
Spot market premiums for nickel products showed mixed fortunes in Europe and the US in the week ended Tuesday January 24, with briquette premiums in both regions moving downward on a shift in sentiment
Consolidation, the recycling of electric vehicle batteries, US steel exports and the benefits of sustainable steelmaking were key talking points at Fastmarkets’ Scrap & Steel 2023 conference in Dallas in January
Green shoots of increased demand will emerge in US ferrous markets courtesy of the Biden administration’s trillion-dollar infrastructure package in 2023, Schnitzer’s executive vice president and chief strategy officer Richard Peach said at Fastmarkets’ Steel and Scrap Conference 2023 in Dallas, Texas
US special bar quality steel prices rose in January in line with rising scrap and alloy costs, according to market participants
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed