Breaking News
Get 40% Off 0
Is NVDA a 🟢 buy or 🔴 sell? Unlock Now

US to impose tariffs on tin mill steel from Canada, China, Germany

Published Aug 17, 2023 09:14AM ET Updated Aug 17, 2023 01:10PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Red-hot steel plates pass through a press at the Tata steel plant in Ijmuiden, Netherlands April 3, 2019. REUTERS/Yves Herman/File Photo
 
CLF
+2.51%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By David Lawder

WASHINGTON (Reuters) - The U.S. Commerce Department on Thursday said it will impose preliminary anti-dumping duties on tin-plated steel imports from Canada, Germany and China, sparing five other countries in a decision that drew some relief from food can manufacturers that had feared higher tariffs.

The department said the highest preliminary anti-dumping duties of 122.5% will be imposed on tin mill steel imported from China, including the country's largest producer, Baoshan Iron and Steel.

The department will impose preliminary duties of 7.02% on tin mill imports from German producers, including Thyssenkrupp (ETR:TKAG) and 5.29% on imports from Canadian producers, including ArcelorMittal (NYSE:MT) DOFASCO.

No duties will be imposed on the shiny silver metal - widely used in cans for food, paint, aerosol products and other containers - imported from Britain, the Netherlands, South Korea, Taiwan and Turkey, the Commerce Department added.

A Commerce Department official told reporters that producers in Canada, Germany and China were found to be selling tin mill steel at prices below those in their home markets. China's rates were higher because a lack of cooperation from a major producer in the investigation led to an "adverse inference" determination, while other respondents could not prove that they were independent of the Chinese government, the official added.

The closely watched case was initiated in February after a petition from a single U.S. steelmaker, Cleveland-Cliffs (NYSE:CLF), alleged foreign dumping in the tin-plate sector, which has seen several U.S. production facilities close in recent years.

The Commerce Department in June announced preliminary anti-subsidy duties of 543% on tin mill imports from Baoshan Iron and Steel and 89% on those from all other Chinese producers as part of a separate, parallel investigation.

The other countries cited in Thursday's decision were not subject to anti-subsidy investigations.

HIGHER COSTS?

The Can Manufacturers Institute, a trade group, argued prior to the decision that because U.S. steelmakers currently produce less than half of the tinplate needed for domestic can manufacturing, any new import duties will lead to higher material costs and food prices at a time when inflation remains elevated.

A bipartisan letter from members of Congress in June also argued that high anti-dumping duties would raise costs for canned packaging for food and aerosol products and could help Chinese producers of canned goods, leading to increased canned food imports from China.

But the duties were significantly less than initially feared. In its initial petition, Cleveland-Cliffs asked the Commerce Department to imposed anti-dumping duties of 79.6% on imports from Canada, 70.2% on Germany, 111.92% on Britain, up to 110.5% on South Korea, up to 296% on the Netherlands, up to 60% on Taiwan and up to 97.2% on Turkey.

In a statement, the Can Manufacturers Institute said it was "thankful" that most of the high duties requested by Cleveland-Cliffs were not imposed.

"We are hopeful the final Commerce determination will eliminate the proposed duties on Canadian and German tin mill steel," said Robert Budway, the group's president.

"U.S. tin plate prices already remain the highest in the world due to the 232 tariffs, placing domestic can makers at a competitive disadvantage to foreign imports of unfilled steel cans and foreign filled food products," Budway said, referring to the "Section 232" tariffs on global steel and aluminum imports first imposed by the Trump administration.

The five countries that escaped duties account for about half of U.S. tin mill steel imports, while China accounts for about 14% and Canada and Germany account for about 30%, the Commerce Department official said.

The tariffs decision was announced less than a week after Cleveland-Cliffs announced a buyout offer of its major competitor in the tin-plate sector, U.S. Steel, an acquisition that would accelerate consolidation among American steel producers. Cleveland-Cliffs Chairman Lourenco Goncalves has repeatedly argued in favor of the need to maintain the 25% "Section 232" national security tariffs on imported steel imposed by the Trump administration.

Cleveland-Cliffs in 2020 acquired AK Steel and ArcelorMittal's U.S. assets, making it the largest U.S. producer of blast-furnace steel made from iron ore.

US to impose tariffs on tin mill steel from Canada, China, Germany
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Ac Tektrader
Ac Tektrader Aug 17, 2023 1:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
more negative fallout from the economic failures of the Trump Administration... creating more monopolies and higher prices...
Brent Oil
Brent Oil Aug 17, 2023 12:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Adam Smith proved in 1730 how detrimental tariffs are to economies on both sides of the tariffs. Primitive and inefficient for the global economy.
Kevin Parker
Kevin Parker Aug 17, 2023 10:14AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ouch another big blow to the Canadian economy. What are they doing up there?
Roger Miller
Roger Miller Aug 17, 2023 10:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bidenomics once again driving inflation.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email