Ongoing discussions on future of S201 sanctions on steel imports
Steel safeguard measures were brought into force by the Bush administration in March 2002, following the consecutive bankruptcies of US companies. The aim of the safeguard measures imposing upto 30% of tariffs on steel imports was protecting the
US steel industry from a surge of cheap imports; however same were challenged by the WTO via a ruling claiming that they were against the international
trading rules.
Currently, the White House is reviewing the facts related to these tariffs, studying the way the industry has used them to restructure as well as the effects of the duties on steel consumers such as automakers.
A dispute has been going on between the steel consumers in the US that are pushing for the cancellation of the tariffs and the producers, complaining about unfair competition arising from the imports.
At the same time, there is the threat by the EU to retaliate the US safeguard measures with tariffs more than $2 billion on US goods into the Community markets.