Industry and Consumer Groups React to Section 232 Tariff Expansion
As the dust settles on the Trump administration's expansion of Section 232 tariffs on steel and aluminum imports, industry and consumer advocacy groups responded with either glowing support or dour predictions of economic ruin.
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Industry groups were broadly in favor of the additional measures; the president of the Steel Manufacturers Association, Philip Bell, issued a statement calling them a "major step forward" that will "create more American jobs." The group predicted a revival of the domestic steel industry, saying, "As the revised steel tariff goes into effect today, President Trump is boldly declaring that America will no longer be a dumping ground for cheap, subsidized foreign steel."
Groups representing consumers, such as the National Taxpayer's Union, were less sanguine. NTU's president, Pete Sepp, issued a statement saying that the new tariffs "will make the financial burden even heavier on U.S. manufacturers, homebuilders, and consumers."
Yesterday saw a dramatic turn of events as the Commerce Department implemented an expansion of Section 232 tariffs on steel and aluminum products, including "derivatives" outside of Chapters 73 and 76 (see 2503110084). Trump also announced, then walked back, punishing 50% tariffs on Canadian products, in a public spat with Ontario premier Doug Ford (see 2503110016).
The NTU applauded the decision to reverse course, calling it a "prudent move," while advising the President to focus more on slashing regulations than increasing tariff rates.
The Coalition for a Prosperous America, an advocacy group aligned with the president on trade and manufacturing policies, rebutted concerns that tariffs might harm the American economy, calling such market fears "overblown," in a statement. The group called for patience, saying that "Tariffs aren’t the problem -- they are the solution."
On the other hand, the Coalition of American Metal Manufacturers and Users issued a statement saying that the re-imposition of these tariffs "without a workable exclusion process" will harm U.S. manufacturers. The group said that domestic manufacturers will have to pay "significantly" more than international competitors, "undermining their ability to compete."
Aluminum Association President Charles Johnson also called for an exclusion process, while welcoming the closure of "loopholes" in the Section 232 tariff framework, saying "we encourage President Trump and his administration to deliver a deal with Canada to ensure robust metal supply for U.S. manufacturers and consumers as he did in his first term with the USMCA.” Additionally, he called for more certainty in the "tariff landscape."
The uncertainty surrounding tariffs caused by the president's penchant for announcing tariffs through social media is affecting domestic manufacturing. In an email, aluminum producer Hydro stated that "what’s clear is that the situation around tariffs in the U.S., countermeasures from the EU and trade tensions creates uncertainty both for Hydro and the aluminium market globally."