[WASHINGTON] The US Commerce Department said on Tuesday (Aug 19) that it is hiking steel and aluminium tariffs on more than 400 products, including wind turbines, mobile cranes, appliances, bulldozers and other heavy equipment, along with railcars, motorcycles, marine engines, furniture and hundreds of other products.
The department said that 407 product categories are being added to the list of “derivative” steel and aluminium products covered by sectoral tariffs, with a 50 per cent tariff on any steel and aluminium content of these products plus the country rate on the non-steel and non-aluminium content.
Evercore ISI said in a research note that the move covers more than 400 product codes representing over US$200 billion in imports last year and estimates it will raise the overall effective tariff rate by around one percentage point.
The department is also adding imported parts for automotive exhaust systems and electrical steel needed for electric vehicles (EVs) to the new tariffs, as well as components for buses, air conditioners as well as appliances, including refrigerators, freezers and dryers.
A group of foreign automakers had urged the department not to add the parts, saying the US does not have the domestic capacity to handle current demand.
Tesla unsuccessfully asked Commerce to reject a request to add steel products used in EV motors and wind turbines, saying there was no available US capacity to produce steel for use in the drive unit of EVs.
The new tariffs take effect immediately and also cover compressors and pumps and the metal in imported cosmetics and other personal care packaging, such as aerosol cans.
“Today’s action expands the reach of the steel and aluminium tariffs and shuts down avenues for circumvention, supporting the continued revitalisation of the American steel and aluminium industries,” said Under Secretary of Commerce for Industry and Security Jeffrey Kessler.
Steelmakers, including Cleveland Cliffs, Nucor and others, had petitioned the administration to expand the tariffs to include additional steel and aluminium auto parts. REUTERS
