EU, American Steel Users Say Section 232 Tariffs Ineffective
The Coalition of American Metal Manufacturers and Users said the U.S. negotiators aiming to end Section 232 tariffs by addressing steel overcapacity should listen to U.S. industrial users of the metals.
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“The 232 tariffs on steel and aluminum should have never been applied to our allies in the first place. They have only served to increase the costs of goods manufactured in America compared to overseas competitors who can simply import the finished product to the U.S., and thus continue to erode the ability of the U.S. manufacturing sector to compete and survive in the global market,” CAMMU said. “Record high prices, shortages and delays in delivery for steel and aluminum are rippling throughout downstream industries, disrupting supply chains and threatening the economic security of American workers.”
The European Union, which agrees with CAMMU's arguments, issued a fact sheet noting that U.S. domestic steel prices have increased 160% since August 2020, and that U.S. steel producers charge 68% more than the average of producers elsewhere.
“The tariffs had no positive effect on global overcapacity: Chinese steel overcapacity has increased since the introduction of the US 232 steel and aluminium measures,” the EU said.
The EU and the U.S. set a goal during this week's G-7 Summit to drop the tariffs on European producers by year's end, once the EU and the U.S. agree on a joint strategy to fight Chinese producers' uneconomic overcapacity.