Taxes, Tariffs & Trade
U.S Senator Ron Johnson (WI-R) met with 15 Wisconsin companies, including NAFEM members Hatco, represented by Dave Rolston, CFSP, president/CEO, and Vollrath, represented by Steve Heun, CFO, to learn more about the impact on their businesses of the Section 232 steel and aluminum tariffs and Section 301 tariffs on Chinese imports.
The Administration has proposed an additional $200 billion in 10% tariffs on Chinese imports. This new list of tariffs (list 3), has been added to list 1 of $34 billion in 25% tariffs that went into effect July 6, and list 2 of $16 billion of 25% tariffs under consideration.
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.
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.
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.”
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.