Suspension of 25% Tariffs on Ukrainian Steel Praised
When the Biden administration announced that the U.S. would roll back 25% tariffs on Ukrainian steel for one year, following the U.K. and the EU, there was no pushback from steel interests, and praise from Senate Finance Committee Chairman Ron Wyden, D-Ore.. He issued a statement that said, "As Ukraine continues to valiantly fend off Russia's brutal invasion, it is important that the United States do everything it can to support the Ukrainian economy. Removing the Section 232 tariffs is an appropriate and welcome move from the Biden Administration that makes clear our primary concern is with China's overcapacity, not the people of Ukraine."
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Sen. Pat Toomey, R-Pa., and Sen. Dianne Feinstein, D-Calif., had asked the administration to do this, and they thanked the administration for lifting the tariff and said Congress will be looking for other ways to support Ukraine. “We called for this action last month because reinvigorating trade with Ukraine will have long-term benefits not only for American consumers and manufacturers, but also the well-being and security of the free world as Ukrainians seek to rebuild and reintegrate their economy after the war ends," they said.
Ukraine exports far more pig iron to the U.S., which is tariff-free, than steel, but the press release from the Commerce Department said, "For steel mills to continue as an economic lifeline for the people of Ukraine, they must be able to export their steel. Today’s announcement is a signal to the Ukrainian people that we are committed to helping them thrive in the face of Putin’s aggression, and that their work will create a stronger Ukraine, both today and in the future." The release said one in 13 Ukrainians works in the steel industry, and that some Ukrainian mills have restarted production.
The Coalition of American Metal Manufacturers and Users, whose members pay more because of the tariffs, said: "The war in Ukraine underscores the irony of maintaining the 'national security' tariffs on steel and aluminum imports imposed by the Trump Administration in 2018 on our close allies as the United States seeks to build a global coalition to confront Russia’s aggression. The domestic steel and aluminum industries continue to enjoy record profits while U.S. steel- and aluminum-using manufacturers can’t obtain the steel and aluminum needed to meet demand due to a range of supply chain issues exacerbated by these tariffs.
Scott Lincicome, trade director at the libertarian thknk-tank Cato Institute, responded on Twitter that while it was good the tariffs were being lifted, "one year is way too short: to encourage investment/production in UKR, they need LONG TERM tariff-free access to the US market...."