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How companies can escape Trump tariffs
Story Date: 3/20/2018
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Source: POLITICO'S MORNING AGRICULTURE, 3/19/18
Starting today, companies can apply to the Commerce Department to get out of the planned steel and aluminum tariffs, our friends at Pro Trade write.
Both those affected and administration officials alike have little time to handle the requests. Commerce is estimating that it will receive 4,500 applications for requests to be excluded from the steel tariffs and 1,500 requests to get out of the aluminum tariffs. The review period for any exclusion requests will be limited to 90 days, which will also include consideration of any objections.
Exclusion criteria: The just-published rule says Commerce will only grant exclusions in three cases: if the steel or aluminum product "is not produced in the United States in a sufficient and reasonably available amount; is not produced in the United States in a satisfactory quality; or for a specific national security consideration."
It is unclear how food and beverage companies seeking exclusions will fare. Commerce has provided some additional information about the process on steel exclusions here and aluminum exclusions here.
Lobbying blitz continues: Another prominent industry group is trying to use the President Donald Trump's favored news sources to sway him against imposing duties on steel and aluminum imports.
The Association of Equipment Manufacturers will run a 30-second ad featuring manufacturing employees speaking directly to Trump, warning him of potential negative consequences for their industry if tariffs take effect.
AEM said members have already seen steel prices rise over the last several months amid speculation that tariffs were coming, leading to higher costs for manufacturers.
The ad will run on Fox News Channel's "Fox & Friends" and "Hannity" and MSNBC's "Morning Joe" over the coming weeks, AEM said. It will target not only Trump but also Commerce Secretary Wilbur Ross and U.S. Trade Representative Robert Lighthizer, who are both closely involved in the exemption process.
Groups also unite over another set of tariffs: After POLITICO reported that Trump had told top officials he wanted to soon hit China with steep tariffs and investment restrictions in response to allegations of intellectual property theft, 45 trade associations are pleading with the Trump administration work instead with other nations to press Beijing to end restrictions on foreign firms, The Wall Street Journal reports . Imposing tariffs "would trigger a chain reaction of negative consequences for the U.S. economy," the group write in a letter.
Estimating billions in costs: Tariffs on information and communication technology products of around 25 percent would cost the U.S. economy $332 billion over the next 10 years, according to a new report. Tariffs of 10 percent (similar to the level announced for aluminum imports) would cost $163 billion over the same period, Pro Trade's Megan Cassella writes.
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