US end consumers urge Biden to waive Section 232 tariffs

A coalition of American steel producers and consumers sent a letter to President Joe Biden on February 10 asking for an immediate end to Article 232 tariffs on steel and aluminum, stating that the tariffs imposed under former President Donald Trump had damaged the steel industry.

The group said it was pleased with Biden’s January 25 order to strengthen Buy America and other “made in America” ​​programs, which require, among other things, that US steel be used in federally funded projects, but at fixed rates. and the “broken” exclusion process is still in place, making it difficult for US manufacturers to compete with global competition.

“The domestic steel industry, which believes tariffs should remain in place, does not understand that if US steelmakers do not buy their steel products, any misperceived benefit gained from tariffs will be useless if their customers go out of business. because of high steel prices and lack of supply, ”the letter says.

The 25 percent steel tariff and the 10 percent aluminum tariff, imposed by former President Donald Trump in March 2018, “contribute to the crisis for American steel and aluminum producers as these companies are needed to help the country recover from the economic crisis. caused by the COVID-19 pandemic, ”the group continued.

CAMMU said its members are facing record steel prices as well as long delivery times from domestic factories, causing major disruptions.

At the same time, the group said the tariffs ignored global structural supply issues as tariffs negatively impacted international negotiations to eliminate excess capacity.

“It’s time for the US to put counterproductive trade policies in the past,” said CAMMU. “We ask that you immediately remove the Section 232 tariffs on steel and aluminum, and instead focus on renewing engagement with our trading partners for a coordinated response to address the root cause of global steel and aluminum overproduction: overcapacity in China. ”

CAMMU, representing more than 30,000 companies in the manufacturing sector and supply chains, was created in the wake of Section 232 tariffs on metals to oppose the trade measure.

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