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ROCKEFELLER TELLS PRESIDENT EXEMPTIONS ARE UNDERMINING 201 STEEL TARIFFS
-Urges President to Stop Granting Exclusions for Foreign Steel, Says Domestic Steel Industry Still in Jeopardy-

WASHINGTON, D.C. - Two days after the president announced he would not support health care coverage for retired steelworkers, Senator Jay Rockefeller (D-WV) urged the president not to undermine the steel community on another front – granting exclusions to Section 201 steel tariffs that are intended to give the industry breathing room. In a letter to the president delivered today, Rockefeller (D-WV) joined 12 other senators in urging the president to stop granting exclusions that exempt foreign steel from the Section 201 steel tariffs announced in March. (2-page letter attached.)

Noting that the administration has already exempted many major steel producers and nearly 200 steel products from the 201 measures, the senator said that, "additional exemptions would dangerously undermine the impact of the Section 201 measures, and endanger the survival of the domestic steel industry."

"Product exclusions cannot be used as a loophole to defeat the purpose of our trade remedies. Already one-third of U.S. steel imports are exempted from the Section 201 tariffs. Granting additional exclusions for products that are available from domestic sources will dramatically undermine the effectiveness of the Section 201 remedy, and cause further industry to the domestic steel industry," Rockefeller added.

Nearly 200 exclusions have already been granted for steel products that are not currently made in America. In addition, there are "country of origin" exclusions, such as NAFTA members and developing countries, that focus not on the steel product but instead exempt certain countries from the tariff remedies. The president is also allowing one million metric tons of Korean and Australian imports to come into the U.S. tariff-free.

While exclusions from import tariffs can be appropriate where no competing product can be produced domestically, Rockefeller noted, in many instances domestic producers would be eager to resume production if our trade laws could be enforced to provide stability in the market.

Rockefeller expressed concern that the administration was using the exclusions process to appease foreign governments and foreign steelmakers. "When administration officials go to the steel country, they tell us they’ll stand up for steel, but when they travel overseas, they encourage foreign steelmakers to apply for exclusions. This administration has to demonstrate whether it is serious about using 201 tariffs to create the breathing space the U.S. steel industry needs to rebuild, or is it going to cave in to foreign pressure and undermine the remedy our steel industry needs."

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