Taxes, Tariffs & Trade

Last week, the Coalition of American Metal Manufacturers and Users (CAMMU) released a policy paper on the estimated impacts of the Section 232 tariffs on imported steel and aluminum.

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The Trump administration will proceed with tariffs on steel and aluminum from the European Union, Canada and Mexico. The tariffs take effect June 1 and are expected to challenge ongoing NAFTA negotiations. As a result, all three countries have announced retaliatory tariffs on numerous U.S. imports.

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President Trump announced his intent to proceed with plans to impose an additional 25 percent tariff on $50 billion of Chinese imports, including many finished goods, components and parts used by NAFEM members.

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President Trump extended the 25 percent tariff exception on imported steel and 10 percent on imported aluminum from the EU, Canada and Mexico until June 1, while negotiations continue.

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The U.S. Trade Representative (USTR) is seeking input as it considers an additional 25 percent tariff on a long list of products imported from China under the organization’s remit to provide “protection and enforcement of U.S. intellectual property rights.” Products include both component parts and finished goods.

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Associations of U.S. steel and aluminum-using manufacturers, including NAFEM, have joined forces to form the Coalition of America Metal Manufacturers and Users (CAMMU) which opposes the recently enacted tariffs on steel and aluminum imports.

“Our goal is to end the tariffs as quickly as possible,” said Paul Nathanson, senior principal at Bracewell LLP and CAMMU co-leader. “Together, we’re educating the administration about the detrimental effects of the steel and aluminum tariffs on U.S. manufacturing, a sector the President has prioritized and said he wants to protect and grow.”

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On March 8, President Trump approved a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum. The tariff applies to imports from all countries except Canada and Mexico, while negotiation on the North American Free Trade Agreement (NAFTA) continues.

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In addition to monitoring tariffs on Chinese imports, NAFEM has joined a newly formed group, the Coalition of American Metal Manufacturers and Users, which looks to end the steel and aluminum tariffs by helping the Trump administration understand the potential negative impact of the tariffs on nearly 1 million U.S. manufacturing jobs. Watch for more information on this group coming soon.

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“NAFEM opposes President Trump’s plan to impose steep tariffs of 25 percent on imported steel and 10 percent on imported aluminum.

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