Steel Tariff Approved By TRADE and Industry Minister
In order to help save the sinking steel industry, a 10% valorem duty will be implied on certain steel products imported to the United States. Currently the products enter without any duties. The duty was approved by Rob Davis, the TRADE and Industry Minister. However, with his approval come certain stipulations and conditions.
One of the conditions was created with the intention for steel producers to refrain from raising the prices on the products that would be subjected to the duty, which in turn increased the duty imposed. Another set condition is producer of steel products must work to reduce the prices of some of their products.
Davis’ overall approval is conditional on the fact that two steel producing companies, ArcelorMittal SA and Safal Steel, investing heavily in certain production lines and must agree to not retrench workers on those production lines over a three-year period.
The 10% duty is a direct result of the current state of the steel market. It is flooded with cheap, imported products, making it difficult for domestic suppliers to stay afloat and has led to widespread dumping throughout the industry. The duty will be applied to zinc-coated/galvanized steel, color-coated steel, and aluminum-zinc coated steel.