Leibowitz on Trade: Sections 301, 232 Heating Up

Lewis Leibowitz, a trade attorney and contributor to Steel Market Update, offers the following update on trade issues in Washington affecting the steel industry:

• Section 301 Hearing on Proposed Tariffs: On May 16, the U.S. Trade Representative’s office will kick off three days of hearings on the proposed Section 301 tariffs on China announced in April. Comments on the tariffs will be accepted until May 22. The list of witnesses was published Monday and includes a large number of manufacturing companies that likely would suffer if these new proposed 25 percent tariffs were imposed on China. Several trade associations will be testifying, as well. These proposed tariffs include over 1,400 tariff lines—many of them products already covered by the separate Section 232 tariffs on steel and aluminum. For example, imports of alloy steel seamless pipe used in oil and gas drilling would be charged 25 percent tariffs, although they are already burdened with Section 232 tariffs (25 percent) and antidumping and countervailing duties on OCTG from China. On aluminum, the proposed tariffs would be in addition to any AD/CVD duties and the 10 percent Section 232 tariffs on aluminum imports (Chapter 76 of the Harmonized Tariff Schedule of the U.S.).