Peter Navarro: A new golden age of American steel and aluminum

The American steel and aluminum industry is not only a pillar of the domestic economy, but also a foundation for national security. Recognizing their importance, President Donald Trump Two new declarations have been signed to restore and strengthen the tariffs of Section 232, which were boldly implemented in 2018.

President Trump imposed tariffs in 2018 under Section 232 of the Trade Expansion Act of 1962, and the American steel industry responded with investments of over $15 billion, expanding production and construction of new facilities. Century Aluminum, the largest producer in America, has rebooted its idle production line, expanding Alcoa, and aluminium production in the US has skyrocketed.

President Joe Biden But Trump’s golden age steel and aluminum ends in a dead wave with product exclusion, national exemptions, loose customs and border enforcement, and avoiding widespread tariffs by foreign countries, including many of our putative allies Masu.

Who will be hit hardest by steel and aluminum tariffs?

Taking advantage of Biden’s weakness, China and Russia will transport steel through Mexico and Canada. Japan will target the US market with valuable specialized steel products that will cover US producers amid declining domestic demand.

Government of Canada I poured most of it The billion dollars to the ArcelorMittal facility funds the transition to the latest direct-reduced iron-electric arc furnace (DRI-EAF) operation of the outdated blast furnace. This has given these massive government subsidies an unfair competitive edge to Canada’s national steel champions.

Regarding Mexico, it has accelerated an increase of over 1,000% in steel imports. South Korea used its quota exemption to flood the US market, exporting more than 2.6 million tonnes in 2023 alone. This allowed South Korea’s National Champion Posco to gain a dominant foothold in the American supply chain.

Even Brazil has been caught up in this law. In 2023, we will utilize semifinished steel quota trading to export approximately 4 million tonnes to the US in 2023, which is 15% of all US steel imports. Furthermore, Brazilian producers, supported by export subsidies and weak currency, have acquired American steelmakers, particularly in slab production.

What are tariffs, how do they work and who will pay for them?

The ultimate result was to erase almost all profits under the original Trump tariffs. Major US producers, including integrated mills and mini mills, have reported poor financial performance and production line idling. The utilization of domestic steel capacity has been dangerously lowered to 74%, well below the sustainable 80% threshold.

American aluminum producers have been a huge hit too. Australia doubled its major aluminum exports to the US, but foreign competitors, including strategic enemies such as China and Russia, actively use loopholes in transportation through Mexico and Canada to tariffs evade and avoid it.

As imports surged, domestic aluminum production fell by 30%, while smelter utilization fell by nearly 50%. June 2022, Century Aluminum Gives Idols Hersville, Kentucky. Alcoa announced the permanent closure of the Washington Interco Smelter in March 2023, with the New Madrid Smelter reducing magnitude 7 metals in early 2024, and the US active nuclear aluminum producers were able to The number has decreased even further

To strengthen and revitalize our columnar steel and aluminum industry, President Trump has fully reinstated 25% tariffs on steel imports, eliminating aluminum fees while increasing from 10% to 25%; all Country-specific exemptions and alternative agreements.

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To stop China, Russia and other foreign countries from using Canada and Mexico as transshipment hubs, Trump 2.0 tariffs guarantee all imports, regardless of where they are processed. “Steel and aluminum standard.”

The Trump 2.0 tariff cracks down on the shell game that uses “derivative products” to avoid tariffs. Countries such as China, Russia and other countries currently ship semi-finished steel or aluminum to Mexico, Canada, or the EU, before being sent out to the US tariffs under existing, lightly. Ships before processing (such as cutting, welding, or coating). Trade Agreement Ukraine avoids the duties and dumping obligations of Section 232 and sends semi-finish steel processed in Poland, which is exported as derivative products.

Tariff Everders are also converted to cold roll or galvanized sheets before exporting hot low roll steel to tariff removal countries such as Korea and Japan before being exported to the US. Instead of shipping, for example, aluminum billets that are subject to customs duties, as finished products rather than raw materials, exporters push them to tax-free window frames or door thresholds.

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Trump 2.0 tariffs crack down on all such tariff avoidance by significantly expanding the evasion of derivatives to significantly expand tariff compensation, despite the elimination of the product exclusion process. Such exclusions are overpaid in hundreds of thousands Ministry of Commerce While 115 million tonnes of imports are exempt from customs duties. This bureaucratic giveaway to foreign manufacturers has been eliminated in one stroke of Trump Pen, ensuring an equal playing field for American producers.

Finally, US Customs and Border Security Make sure there is no place to run and no place to hide for tariff evaders. Currently, we will investigate and punish all tariff avoidance and misclassifications strictly.

In these ways, and yet another example of “the promise of Trump’s promises made,” President Trump’s declaration of steel and aluminum leads to a new golden age for the two, Reaffirms his unwavering commitment to workers and national security in the main pillars of industry.

Peter Navarro is a White House senior counselor in trade and manufacturing.