US weighs suspending tariffs on Ukrainian steel imports

The Biden administration is considering suspending tariffs on Ukrainian steel imports, people familiar with the matter said, a mostly symbolic show of support for the war-torn nation.

The move to suspend the duties is not imminent and President Joe Biden hasn’t been presented with the proposal, the people said.

Former President Donald Trump imposed a 25% tariff on all steel imports, justifying the duties on national security grounds. Some countries, including Japan, the U.K. and European Union, have negotiated deals with the U.S. to reduce the tariff.

An NSC spokeswoman said no decision has been made. A Commerce Department spokeswoman didn’t respond to a request for comment.

Members of Congress have pushed the administration to lift the tariffs as the U.S. helps Ukraine stave off a Russian invasion now in its third month. A huge steel plant in Mariupol, Ukraine, has become a bastion for holdout Ukrainian forces and some civilians in the besieged city.

Metinvest Holding LLC’s Azovstal Iron and Steel Works once had the capacity to produce 6.2 million tons of steel and 4.7 million tons of finished rolled steel each year, according to the company’s website—about one-fifth of Ukraine’s steel production.

The European Union has proposed temporarily removing all remaining tariffs and quota requirements on Ukrainian exports, including steel, industrial goods and agricultural products.

The move is mostly symbolic. Current U.S. imports of Ukrainian steel aren’t considered high enough to threaten domestic producers’ market share and Ukraine’s exports of most commodities, let alone finished steel, have collapsed since the war broke out.

In 2021, Ukraine shipped 130,652 metric tons of steel to the U.S., just under 0.5% of total imports of the metal, according to U.S. Census Bureau data.