US Open to Changing Steel and Aluminum Tariffs, Says USTR Greer
US Trade Representative Jamieson Greer signaled on Tuesday that the Trump administration is open to modifying its broad tariffs on steel and aluminum. This news comes as business groups and trading partners increase pressure on the government to ease the administrative burden of these trade policies.
Potential Adjustments for Compliance
Speaking on CNBC, Greer indicated that the administration might change how tariffs are applied to help companies with compliance.
“You may want to sometimes adjust the way some of the tariffs are applied for compliance purposes,” Greer said. “We’ve heard stories of companies that have had to hire extra people just for compliance. We’re not trying to have people do so much bean counting that they aren’t running their companies correctly.”
Administration officials have been working to narrow the scope of these duties. Currently, the tariffs affect not only raw metals but also dozens of “derivative” products that contain them, such as refrigerators and washing machines.
Market Reaction: Metal Stocks Decline
Following Greer’s comments, shares of major US metal companies dropped in Tuesday trading:
- Alcoa Corp. fell as much as 7.9%
- Kaiser Aluminum Corp. decreased 4.5%
- Century Aluminum Co. dropped 4.3%
- Cleveland-Cliffs Inc. led steel losses with a 3.1% decline
Why the Changes Are Being Considered
Many companies have complained that the current levies are extremely difficult to calculate. Importers often have to identify the exact percentage of metal content in finished goods to apply the correct duty.
Additionally, international pressure is mounting:
- The European Union has requested a reduction in these tariffs as part of a pending trade deal with the US.
- Trading Partners like Canada, Mexico, and South Korea were also hit hard by the 50% levy imposed last year.
While the White House has told businesses that adjustments are in the works, the specific timing and details have not yet been released.
Core Tariffs Likely to Stay
Despite the potential for minor changes, Greer emphasized that the main metal tariffs are here to stay. He described them as “very successful” in strengthening the domestic industry.
“Clearly, those are going in the right direction. They’re going to stay in place,” Greer noted, citing increased US steel shipments and the announcement of new aluminum smelters as proof of their success.
Political Context
This review of tariff policy arrives as President Trump faces low approval ratings regarding the economy and the rising cost of living. With midterm elections approaching in November, the administration is under pressure to balance its protectionist goals with the need to keep consumer prices stable.
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