Manufacturers in the United States look for US aluminium and steel tariffs exemption

President Donald Trump’s tariffs on imported aluminium and steel are causing disruptions even to the manufacturers in the United States who buy those metals and thus, asking for relief to the US government.

The Trump government imposed these tariffs last month with an aim to protect its domestic industry which was likely facing harm because of an increase in metal import. However, on repeated request for permanent exemption, the United States granted temporary exemptions to some of its important allies like European Union, Canada, Mexico, Argentina, Australia, Brazil and South Korea until May 1, 2018.

Steel and aluminium consuming companies in the United States are also allowed to seek exemption from the Commerce Department on providing appropriate evidence that they can’t obtain the metals they require from the US producers. As of Tuesday, April 17, 2018, the Commerce Department has received about 2,180 requests for an exemption. According to the norm, once the department posts the request online, it has 90 days to reach a decision. So far, the department could post only a few dozen out of more than 2000 requests.

The Commerce is reviewing the requests on a one-on-one basis instead of granting a broad exemption. This means the department will have to handle more applications and take longer time. At the same time, it raises the possibility that while one company receives an exemption, another is forced to pay tariffs on the same product, perhaps because in the time between the two requests, domestic US production could ramp up to fill the shortage.

David Spooner, a partner at the law firm of Barnes & Thornburg and a former US trade negotiator, commented in this respect “It sure seems like Commerce is just drowning in exclusion requests and will struggle to burn through them.”

Richard Chriss, president of the American Institute for International Steel, which opposes the tariffs, is of opinion that these request forms are “confusing, complex and full of traps for the unwary.”

Mathew Nicely, a trade lawyer at the firm Hughes Hubbard & Reed says that the companies seeking exemptions are required to provide information about their products which could be confidential.