The American Institute for International Steel (AIIS) sent a letter on February 8 to President Trump to provide an overview of the important issues at stake for the steel supply chain and the US as he prepares to make a decision with respect to potential trade measures he might impose on imported steel pursuant to the US Department of Commerce’s recent Section 232 report.
After citing robust economic expansion, low unemployment, and a booming stock market as the Trump administration’s achievements, AIIS President Richard Chriss urged President Trump “not to allow the Commerce Department’s recently completed report on the Section 232 investigation of the impact of steel imports on national security to put these achievements at risk”.
“Imported steel does, indeed, have an effect on the national security of the United States - a positive one. The global steel market means that defense and weapons systems, as well as national critical infrastructure, can be procured and built at more competitive prices. Domestic manufacturers have 75 percent of the total market share, and defense and homeland security accounts for only about three percent of the nation’s consumption of steel produced stateside. Plus, the vast majority of imported steel comes from friendly countries such as Canada, Brazil, and the members of the European Union.
A 2017 study from Martin Associates found that steel port activity supports 1.3 million jobs and $240 billion of economic activity. Imposing new tariffs or quotas on steel imports would have an immediate negative impact on many Americans whose paychecks depend on the steel trade. It would almost certainly invite retaliation by other countries. As history shows, tit-for-tat trade retaliation never ends well. There are no winners. Such an outcome would pose a major threat to global stability and security,” the AIIS letter warned.