U.S. Outlines Rules for Metal-Using Companies Seeking Tariff Exclusions
March 16 2018 - 11:02PM
Dow Jones News
By William Mauldin
U.S. companies looking to bypass President Donald Trump's import
tariffs on steel and aluminum will have a limited chance to win
exclusions for their products under a set of guidelines released
Friday.
Mr. Trump said this month he would impose tariffs of 25% on
steel products and 10% on aluminum, citing national-security
considerations.
Domestic steel and aluminum producers applauded the tariffs, but
users of the metals have complained the duties will raise prices.
Foreign governments have threatened to retaliate against other U.S.
industries and challenge the tariffs at the World Trade
Organization.
Canada and Mexico are exempted from the tariffs for now, and
other U.S. allies and trading partners are seeking to gain
exemptions before the tariffs are imposed in as little as a
week.
Meanwhile, companies that buy imported steel and aluminum are
looking for exceptions for the products they use, too. Mr. Trump's
trade advisers have signaled they want to limit the amount of metal
products excluded from the tariffs in hopes of persuading U.S.
companies to ramp up production of those goods.
The Commerce Department said Friday only U.S.-based individuals
and organizations could apply for the exclusions, in a process that
will take 90 days or longer.
"An exclusion will only be granted if an article is not produced
in the United States in a sufficient and reasonably available
amount, is not produced in the United States in a satisfactory
quality, or for a specific national security consideration," the
Commerce Department said.
After metal-consuming firms apply for exclusions, other
companies--including domestic steel and aluminum producers--have 30
days to post an objection to the original request. Companies
including auto-parts producers worried about rising steel costs and
brewers concerned about aluminum for cans are expected to seek
exclusions.
Tariff exclusions, if granted, would last only one year.
Supporters of Mr. Trump's tariffs say a required renewal on a set
schedule allows domestic producers the chance to start making a
largely imported type of steel or aluminum in sufficient quantities
to supply domestic users.
Commerce Secretary Wilbur Ross is set to answer questions about
the tariffs at a public House committee hearing Thursday, a day
before they are expected to take effect.
The Trump administration's tariff push has generated complaints
from many GOP lawmakers worried about economic damage or
retaliation from abroad.
The European Union on Friday published a 10-page retaliation
plan with American products ranging from bourbon to cranberries,
orange juice, steel, motorcycles and denim. The potential targets
that would face EUR2.8 billion ($3.4 billion) in duties if the U.S.
doesn't exclude the 28-member bloc.
Emre Peker in Brussels contributed to this article.
Write to William Mauldin at william.mauldin@wsj.com
(END) Dow Jones Newswires
March 16, 2018 22:47 ET (02:47 GMT)
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