More than 300 metal manufacturers dependent on aluminum and steel supplies have urged US President Joe Biden to remove tariffs imposed under Section 232, in a letter on May 6.
Groups that organized the document included the Coalition of American Metal Manufacturers and Users and the National Foreign Trade Council. The letter summarizes the current supply situation and outlines challenges that family-owned and large-sized manufacturers are facing under the 25pc on steel and 10pc on aluminum tariff rules.
High tariffs, low sustainability
American businesses using aluminum and steel pay 40pc or more tariffs on products, rendering them unsustainable and difficult to compete with their global counterparts.
Many manufacturers depend on imported raw material and expect delivery within 4-6 weeks. The delivery time currently is 16-20 weeks, and some estimated by 2022, these pushbacks have led to a disruption in operations.
Post-pandemic recovery slow
Manufacturers are getting dragged down under hefty impositions, which are also making post-COVID-19 recovery and growth difficult since producers are unable to meet demand.
The letter concluded by highlighting a worsened scenario, especially hampering the Biden administration’s massive infrastructure investment plan. Since increased spending will also pressurize an already tight aluminum and steel supply within the country.
The newly elected US government had expressed its desire to continue with the tariffs following recommendations from the US Economic Policy Institute (EPI) in March this year. The EPI cited the creation of 3,200 new domestic jobs and a curb on US imports of aluminum and steel raw materials by 27pc.