Trade Group Forms to Oppose 232 on Transformers, Transformer Parts
Buyers of transformers and transformer components have formed a trade group called The Core Coalition to argue that imports of transformers, cores, laminations and other transformer inputs “do not threaten the national security of the United States,” even if those imports increased after tariffs were placed on steel.
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They are pushing back against AK Steel, which says its future is threatened by imports of goods made with grain oriented electrical steel.
“AK Steel’s prices for GOES products are abnormally high compared to competitors,” the coalition said in rebuttal comments posted at Regulations.gov. “AK’s obsolete equipment with inefficient production process steps reflect a failure to invest over many years. Thus, the high level of imports of converted GOES products is a direct consequence of the high price and cost structure at AK for GOES, stemming from inadequate investment by the company. These pricing and cost issues for AK Steel did not happen suddenly. It is certainly not due to imports (i.e. cores and laminations) since 2018.”
“Lower-priced imports are not necessarily unfairly traded. AK Steel has shown in the past (1994 and 2004) that GOES is dumped and/or subsidized,” the coalition said. “That relief did not help them attain competitive parity with foreign producers.”