Industry Groups Call for Relief From Steel Tariffs and Quotas

The American Petroleum Institute (API) has joined other trade associations in comments to the U.S. Department of Commerce (DOC) on Section 232’s interim final rule to raise concerns over the ability of natural gas and oil companies to receive relief from steel tariffs and quotas.

“U.S. natural gas and oil companies should be granted relief from the tariffs and quotas on imported steel that will harm U.S. businesses, our economy, and American consumers,” said Kyle Isakower, vice president of regulatory and economic policy at API. “Tariffs will raise the cost of imported steel by 25%, while quotas will stop U.S. businesses from receiving steel for U.S. energy projects around the country, harming the president’s agenda of continuing our energy renaissance, strengthening our infrastructure, and creating U.S. jobs.”

He added that “any disruption of our complex global supply chains of specialty quality steel—in the quantities we need for U.S. energy projects—could negatively impact building energy infrastructure that benefits consumers, the U.S. military, and manufacturers.” API’s comment letter urged the administration to revise the Section 232 interim final rule in order to improve the process whereby companies will be granted relief from tariffs and quotas, so as not to sever the supply chain of the oil and natural gas industry, which would ultimately impact U.S. businesses, investments, and consumers.

The letter requests a number of revisions, including: The final rule should make clear that exclusions granted apply both retrospectively and prospectively, as to not have costly consequences or create confusion among U.S. businesses. The Department of Commerce should grant relief for purchases made before tariffs were announced. DOC should define and release metrics that will be used to determine whether U.S. steel manufacturers have the capacity to meet demand, in order to provide greater clarity on how Commerce will make its determination regarding production in the U.S. to supply companies in a sufficient and reasonably available amount.

DOC should grant categorical exclusions for products it determines are not available in the U.S. Finally, the agency should defer to companies’ own quality standards and define and release metrics that will be used to determine whether U.S. steel manufacturers have the capacity to meet demand, in order to provide greater clarity on how Commerce will make its determination regarding satisfactory quality steel being produced in the U.S.

(SOURCE: The Weekly Propane Newsletter, May 29, 2018)