Air Freight News

Coalition argues that data shows Section 232 steel and aluminum tariffs hurt American companies

Mar 17, 2021

The Coalition of American Metal Manufacturers and Users (CAMMU), representing more than 30,000 U.S. manufacturing companies and over one million American workers, released a letter today to U.S. Secretary of Commerce Gina Raimondo providing data showing the continuing ineffectiveness of, and damage from, the Trump administration’s Section 232 tariffs on steel and aluminum imports.

Secretary Raimondo mistakenly stated in a March 4 interview that “the data show that those [Section 232 steel and aluminum] tariffs have been effective.” In the letter, CAMMU countered that “the Trump tariffs have increased the costs of goods manufactured in America when compared to overseas competitors whose governments do not impose an artificial tax on their inputs. If these tariffs are not terminated, the result will be lost business for U.S. manufacturers and lost U.S. jobs.”

CAMMU also emphasized that “over 6.2 million Americans work in industries that use steel, while the steel industry itself directly employs only 141,700 workers.” Therefore, “the tariffs have shifted injury from one industry to a much broader segment of the economy.”

In support of its position, CAMMU has provided links to studies, analyses and media reports that demonstrate the negative impact of the Section 232 tariffs on U.S. metal-using manufacturers. “The initial minimal benefits for [domestic] steel producers gained from the tariffs quickly subsided because the protection did not result in the needed restructuring and investments in the U.S. that have plagued the industry for years.” Steel prices in the U.S. are far higher than in the rest of the world, placing U.S. manufacturers at a growing disadvantage with overseas competitors. Reiterating the concerns of CAMMU’s February 10 letter to President Biden, the group notes that “our member companies report not only record steel prices, but also delivery times stretching 12-16 weeks, causing significant disruptions.”

The letter concluded, “CAMMU members are ready to meet with you to provide additional data on the damage that the Trump Section 232 steel and aluminum tariffs are causing U.S. manufacturers, and we are ready to work with you on policies that will strengthen the manufacturing sector.”

CAMMU members include: Associated Builders and Contractors, Hands‐On Science Partnership, Industrial Fasteners Institute, National Tooling & Machining Association, North American Association of Food Equipment Manufacturers, Precision Machined Products Association and Precision Metalforming Association.

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