In a report from the Chicago Tribune over the weekend, US companies seeking exemptions from Section 232 tariffs are accusing US steel producers of “torpedoing” their requests with inaccurate and misleading information.
As an example, Robert Miller, president and CEO of NLMK USA, told the newspaper that US Steel and Nucor have disputed his requests with the US Department of Commerce (DOC), calling their objections “literal untruths.” NLMK imports significant amounts of slab from Russia, and has already absorbed $80 million in duties. US Steel and Nucor reportedly told the DOC that steel slab is “readily available” in the US.
“They ought to be ashamed of themselves,” said Miller, referring to the two largest steelmakers in the US.
The DOC has received over 20,000 waiver applications, and companies can be excused from tariffs if they can show that US producers do not make the specific type of steel they need in sufficient quantities. The DOC also posts exemption requests online to allow for third-party comments, even though such comments frequently come from competitors who would benefit from a rival’s denied request. Additionally, objections are often submitted as the comment period closes, which leaves companies unable to respond.
US Steel told the newspaper that its objections are based on “detailed information about the dimensions and chemistry of the steel included in the requests.”
Jay Zidell, president of Portland, Oregon-based Tube Forgings of America, said US Steel has objected to 38 out of his company’s 54 exclusion requests, saying they are “willing and ready to satisfy” Tube Forgings’ demand for steel tubing. But Zidell told the Tribune that past problems with quality and workmanship resulting in severing ties with the steelmaker prior to the tariffs.
Other companies deny that supply is readily available as US steelmakers claim. California Steel Industries told the Tribune that there is an “acute slab shortage” on the West coast, and the company’s waiver request is “critical to its survival.”