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In this April 16, 2018, photo, President Donald Trump
speaks at an event to promote his tax cut package in Hialeah, Fla. Trump
will play host to Japan’s Shinzo Abe at Mar-a-Lago on Tuesday amid
growing strain between the two countries over the president’s planned
meeting with North Korean dictator Kim Jong Un and his push for new
tariffs. (AP Photo/Pablo Martinez Monsivais)
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By PAUL WISEMAN and CHRISTOPHER RUGABER, AP
WASHINGTON
Rising costs. Delayed shipments. A baffling bureaucracy.
President Donald Trump’s tariffs on imported aluminum and steel are disrupting business for American companies that buy those metals, and many are pressing for relief.
Hundreds of companies are asking the Commerce Department to exempt them from the 25 percent steel tariff and the 10 percent aluminum tariff.
Other companies are weighing their options. Jody Fledderman, CEO of Batesville Tool & Die in Indiana, says American steelmakers have already raised their prices since Trump’s tariffs were announced last month. Fledderman says he may be forced to shift some production to a plant in Mexico in response to demands from his customers.
On Wednesday, a group of small- and medium-size manufacturers gathered in Washington to announce a new group — the Coalition of American Metal Manufacturers and Users — to fight the steel tariff.
The Trump administration last month imposed the tariffs on steel and aluminum, arguing that reliance on imported metals posed a threat to national security. But it promptly granted temporary exemptions, which expire at the end of the month, to several key U.S. allies, including the European Union, Canada and Mexico.
Steel- and aluminum-consuming companies also can appeal to the Commerce Department for exemptions — provided they can show they can’t obtain the metals they need from U.S. producers. As of Tuesday, the department had received 2,180 requests for exemptions from the steel tariffs and 240 requests for relief from the aluminum tariffs.
One applicant, Pensmore Reinforcement Technologies of Ann Arbor, Michigan, says it can’t find the quantity and quality of the steel it needs in the United States. Pensmore makes a steel-fiber reinforcement product that goes in tunnels and bridges and that is being considered for use in Trump’s proposed U.S.-Mexico border wall.
Once the department posts the requests online , it has 90 days to reach a decision. So far, it has posted only a few dozen of the more than 2,000 requests.
“It sure seems like Commerce is just drowning in exclusion requests and will struggle to burn through them,” says David Spooner, a partner at the law firm of Barnes & Thornburg and a former U.S. trade negotiator.
Commerce is reviewing the requests on a company-by-company basis instead of making across-the-board exemptions for individual steel and aluminum products. That approach means it will have to handle more applications.
It also raises the possibility that one company could receive an exemption from the tariffs while another would be forced to pay tariffs on the same product — perhaps because in the time between the two requests, domestic U.S. production has ramped up to fill shortages.
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