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International Trade Commission Rejects Proposed Duties on Tin Mill Steel Imports

by Geraldine S.
02/08/2024
in Global Trade

The US International Trade Commission (ITC) has unanimously voted against the imposition of new tariffs on tin mill steel imports from China, Canada, South Korea, and Germany. This decision overturns the US Commerce Department’s recommendation for significant duties, including a 122.5 percent tariff on Chinese products, and lower tariffs ranging from 2 to 6.88 percent for the other countries involved.

The ITC concluded that the US tin mill steel industry is not facing material injury or threat from these imports. As a result, the existing 25 percent custom duty on Chinese tin mill steel, established in 2018, will remain in effect without the addition of the proposed new tariffs.

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The decision has sparked reactions from several lawmakers, including Senator Sherrod Brown of Ohio and Senator Joe Manchin of West Virginia, both Democrats who have been vocal supporters of the tariffs. They argue that the ruling undermines the competitiveness of domestic manufacturers against what they see as unfairly priced foreign steel. Senator Brown expressed disappointment with the ITC’s ruling, emphasizing the challenges it poses for Ohio’s tin mill industry. Senator Manchin has pledged to continue efforts to support steelworkers and the American manufacturing sector, highlighting the importance of a strong steel industry for national security.

The case for imposing new duties was initiated by Cleveland-Cliffs and the United Steelworkers union, pointing to below-market pricing practices by foreign producers. Their petition led to a Commerce Department investigation, which confirmed the pricing discrepancies.

Opposition to the proposed tariffs came from the Consumer Brands Association (CBA), representing around 200 packaged goods companies. The CBA argued that the tariffs would jeopardize nearly 40,000 manufacturing jobs and significantly increase consumer prices for canned goods, potentially by up to 30 percent. They contended that US companies often turn to foreign tin mill products due to unmet quality standards and requirements by domestic steelmakers. Following the ITC’s decision, the CBA expressed relief, noting concerns that the tariffs would have driven can manufacturers to seek supplies from other markets, such as Mexico, where similar tariffs do not apply.

Your source for supply chain report news updates: The Supply Chain Report. For international trade insights and tools, head to ADAMftd.com.

#USTariffs #TinMillSteel #SteelImports #InternationalTrade #USITC #ManufacturingJobs #SteelIndustry #ForeignCompetition #ClevelandCliffs #ConsumerBrandsAssociation #SenatorBrown #SenatorManchin #TradeDecision

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