In April of 2017, the U.S. launched a national investigation into the security of steel imports and in 2018, a 25% tariff on steel was introduced in order to give American steel manufacturers a boost over foreign suppliers. While this began as a win for the steel industry, data released in early 2020 has shown that the steel tariffs have hurt steel manufacturers in the U.S., downstream. Many manufacturers and steel mills have had to make significant cutbacks.
As of May 31, 2022, President Joseph R. Biden Jr. issued a proclamation (Proclamation 10403) to address the evolving landscape of steel imports. Let’s explore the key updates and their implications.
Original Steel Tariffs: In 2018, a 25% tariff on steel was introduced to support American steel manufacturers over foreign competitors. This decision was influenced by the findings that steel imports were threatening national security.
Proclamation 10403: On May 27, 2022, President Biden suspended the steel tariffs for imports from Ukraine for one year due to the disruption in Ukraine’s steel industry caused by the Russian Federation’s ongoing conflict with Ukraine.
Recent Developments and Implications
Ukraine’s Steel Industry: Despite the slight increase in steel imports from Ukraine in 2022 compared to 2021, it still accounted for less than 1% of all steel imports into the United States. The ongoing conflict between Ukraine and Russia significantly disrupted Ukraine’s steel production. The United States is keen on supporting Ukraine’s economic recovery by maintaining the steel industry.
Extension of Tariff Suspension: President Biden extended the suspension of steel tariffs for Ukraine in Proclamation 10403, highlighting Ukraine’s unique situation. The suspension remains in effect, and the Secretary of Commerce continues to monitor developments in both the domestic steel industry and Ukraine’s steel production.
European Union Involvement: Due to disruptions in the Ukrainian steel industry, some steel articles from Ukraine are being further processed in European Union member countries. The scope of Proclamation 10403 has been expanded to include the suspension of tariffs on products from the European Union made from steel originating in Ukraine, further aiding Ukraine’s steel industry. A certificate of origin attesting to the Ukrainian origin of such steel articles is required for duty-free treatment.
Maintaining Current Tariff Levels: President Biden has chosen to maintain the current tariff levels for steel imports from other countries, as it aligns with national security interests.
Tariff Rate Quota Exemption: Steel articles from a member country of the European Union where the steel used in their manufacture is melted and poured in Ukraine are exempt from the tariff rate quota established in a previous proclamation.
Certificate of Origin Requirement: To qualify for duty-free treatment, steel articles from Ukraine must be accompanied by a certificate of origin. Non-compliance may lead to tariff collection or penalties under U.S. law.
At CSM Metal Decking, we do our best to support domestic manufacturers by keeping a majority of our inventory domestic. Currently, we are sourcing 100% domestic steel made by American labor in Arkansas for our metal deck production facility in Houston, Texas.
Domestic Coil from CSM Metal Deck
CSM Metal Decking, a division of CSM Products & Solutions, LLC, believes in supporting American companies and workers, and we back a number of U.S. steel mills, including:
What to Consider When Ordering Metal Deck for Your Project
If you’re working on an industrial or commercial construction project that needs metal roof deck or form deck for concrete, it’ll be important to determine if you need domestic steel or other materials in your project.
Foreign steel imports have traditionally been cheaper, but if you’re using foreign materials the quality of the steel manufacturer always needs to be checked and verified. Not all foreign products are as high quality as what you can get locally in the U.S. from a domestic manufacturer.
Additionally, some deck projects on government buildings require domestic material. If your job requires domestic materials, make sure to make note of this requirement on any quote requests and orders.
To request a domestic coil, metal deck, composite deck, or form deck shipment from CSM Metal Deck, fill out our contact form.