SMU Market Trends: What Will Trump Do on 232?

President Trump has made no official announcement about his plans for Section 232, leaving the steel market to speculate on last week’s Commerce Department recommendations. The majority of respondents to this week’s Steel Market Update market trends questionnaire are guessing he will come up with his own solution to combat unfair imports.

The Commerce recommendations include three options designed to raise domestic steel production above 80 percent of capacity: a global tariff of at least 24 percent on all steel imports; a targeted tariff of 53 percent on all steel imports from 12 high-export countries, along with a quota that limits all countries to their 2017 export levels; or a quota on all steel products from all countries equal to 63 percent of their 2017 exports to the U.S. The president has until April 11 to choose one of these options, offer a modified plan or take no action at all.