Coalition Alarmed That EU May Get Break on Section 232
The Coalition for a Prosperous America reacted with alarm to Commerce Secretary Howard Lutnick's offer that the U.S. could soften its tariffs on European steel and aluminum if the EU changes its approach to regulating American tech giants.
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The group, whose former CEO joined the Office of Management and Budget as associate director for economic policy and Buy America, said that tariffs are crucial to protect American metal fabricators, and complained that previous changes to the Section 232 tariffs harmed those businesses.
"Trading away aluminum and steel workers’ home market in exchange for padding Big Tech’s bottom line overseas is immoral and wrong," the group wrote Nov. 25.
They complained that imports of Mexican steel conduit enter tariff-free if they use U.S. steel, which helps lower-priced labor outcompete domestic fabricators. They also said "domestic steel mills and aluminum smelters cannot satisfy domestic demand," so if there are foreign sales, that means domestic producers may have to buy imported metal. They also complained that the prices domestic fabricators pay for U.S. steel and aluminum have climbed, even though no tariff is due on those products.
The coalition also criticized the administration's application of Section 232 tariffs only to the steel or aluminum content of a product. "Essentially, the importer was expected to ask the overseas fabricator what they recalled paying for the metal used in their product, and the tariff was applied to this alleged, unverifiable transaction price. This approach is unworkable."
"Metal fabricators have been pleading with Commerce for months, hoping that the Administration would deliver on its reshoring promises. Instead, we see USTR trading away our aircraft supply chain to Malaysia and Cambodia in exchange for one-off Boeing airplane sales," CPA wrote.