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U.S. Industry Associations Strongly Oppose Steel and Aluminum Tariffs on America’s Trade Partners

U.S. Industry Associations Strongly Oppose Steel and Aluminum Tariffs on America’s Trade Partners

On May 31 the US-President announced the implementation of a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports from some of the nation’s strongest trade partners – Canada, Mexico and the European Union – drawing the ire of multiple American Industry Associations. The tariffs are the consequence of failed agreements between the US and some of its most important partners like Canada, Mexico and the European Union. According to a release from the White House, the United States was unable to reach satisfactory arrangements, with these countries, resulting in the implementation of the tariffs. The American industry concerned comments as follows:

INGAA
The Interstate Natural Gas Association of America (INGAA) released the following statement given by the organizations CEO Don Santa:
“The administration’s decision to immediately impose a 25 percent tariff on steel imported from our long-standing allies of Canada, Mexico and the European Union is very troubling to the US pipeline industry and inconsistent with the administration’s long-standing goal to capitalize on our nation’s energy abundance to help bring low-cost energy to American consumers. National security depends on pipelines to deliver the energy America needs to heat homes and fuel businesses. Because of insufficient pipeline capacity, certain parts of our country still rely on imported fuels to meet basic energy needs. In fact, this winter New England resorted to Russian LNG to meet demand during a cold snap, despite having some of the world’s most affordable natural gas – abundant domestic supplies from the Marcellus Basin – only a few hundred miles away. Pipelines require specialty steel products not always available in sufficient quantities and specifications from domestic manufacturers. For certain steel products used in pipelines, no domestic product is available today."

API
The American Petroleum Institute`s CEO Jack Gerard responded this in regards to the tariffs:
“We are deeply discouraged by the administration’s actions to impose tariffs on our three closest trading partners and view this as a step in the wrong direction,” said Gerard. The implementation of new tariffs will disrupt the U.S. oil and natural gas industry’s complex supply chain, compromising ongoing and future U.S. energy projects, which could weaken our national security. Increased prices in specialty steel could threaten the continued domestic production of oil and natural gas and natural gas liquids – which are at their highest levels of production since 1949 – and could raise energy costs for U.S. businesses and consumers, while threatening the nation’s ability to achieve President Trump’s goal of energy dominance".

AEM
The Association of Equipment Manufacturers also opposes these tariffs. The Association`s president, Dennis Slater, released the following statement:
"Starting a trade war with three of our nation’s largest trading partners and strongest allies will disrupt the entire global trading system, placing American manufacturing jobs at risk. These harmful tariffs will directly contribute to higher steel prices, increase costs for agriculture and construction machinery, wreak havoc on the business operations of equipment manufacturers, and jeopardize many of the 1.3 million good-paying jobs our industry supports. If the United States does not grant the European Union, Canada, and Mexico a permanent exemption from steel and aluminum tariffs and quotas, we will face retaliatory actions that will result in diminished U.S. exports and market access for American made equipment and agricultural commodities. We therefore urge the Trump administration to refrain from imposing tariffs on steel and aluminum imports from the European Union, Canada, and Mexico.”

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