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US Department of Commerce approves first batch of steel products "232" tariff exemption application

Sep. 10, 2018

The US Department of Commerce announced on August 20 that it has approved the first batch of applications for steel products exempt from the US "232" tariff.


The US Department of Commerce issued a statement on the same day, which approved 42 applications for “232” tariff exemptions from seven companies, covering steel products imported from Japan, Sweden, Belgium, Germany and China. At the same time, the application for the “232” tariff exemption for 56 steel products proposed by 11 companies was rejected.


The US Department of Commerce said that if the United States does not produce certain types of specific products, and such products do not generate important national security concerns, then the "232" tariff exemption can be obtained.


US Commerce Secretary Ross said at the hearing of the Senate Finance Committee that as of June 20, the US Department of Commerce had received a "232" tariff exemption application from about 20,000 steel products and about 2,500 aluminum products submitted by the company.


Senior Democratic Party member Ron Wyden accused the US Department of Commerce of dealing with the "232" tariff exemption application very slowly, requiring the US Department of Commerce to improve the procedures and provide a clearer timetable. The chairman of the Senate Finance Committee and Republican MP Olin Hatch pointed out at the hearing that steel and aluminum tariffs could not protect US national security, but would hurt American manufacturers, consumers and the overall economy.


US President Trump announced on March 8 this year that since imported steel and aluminum products endangered US national security, according to Section 232 of the US Trade Expansion Act of 1962, the United States will impose 25% on imported steel and aluminum products, respectively. And with 10% tariffs, tariff measures came into effect on March 23. U.S. companies can file an exemption application from the US Department of Commerce starting March 19. Due to violations of WTO rules, US steel and aluminum tariffs have been widely opposed by many governments and companies.


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