Nation

Tariff Waivers Let U.S. Government Pick Winners And Losers : NPR

Jerry Castillo prepares a steel pipe at the Borusan Mannesmann Pipe manufacturing facility Tuesday, June 5, 2018, in Baytown, Texas. The company is seeking a waiver from the steel tariff to import tubing and casing.

David J. Phillip/AP


hide caption

toggle caption

David J. Phillip/AP

Jerry Castillo prepares a steel pipe at the Borusan Mannesmann Pipe manufacturing facility Tuesday, June 5, 2018, in Baytown, Texas. The company is seeking a waiver from the steel tariff to import tubing and casing.

David J. Phillip/AP

The Trump administration is preparing to add tariffs — or taxes — on virtually everything the U.S. buys from China. But the president offered reassurance that in some cases, waivers will be granted, so Chinese goods can be imported tax-free.

The administration has offered similar waivers from its steel and aluminum tariffs, putting the Commerce Department in the awkward position of literally picking winners and losers.

Rep. Jackie Walorski, R-Ind., called the process, “a master class in government inefficiency.” Her district includes big steel and aluminum users, including RV manufacturers.

The administration has received more than 80,000 requests for relief from the steel and aluminum tariffs imposed last year. As of last week, more than 55% were still awaiting a decision.

“It is a nightmare, like dealing with a lawyer and the IRS at the same time,” said Paul Everett, vice president of purchasing at Omega Steel.

The St. Louis company sells heavy-walled steel pipe, mostly to the oil and gas industry. Everett says there are only a handful of mills around the world that produce that kind of pipe, so Omega has asked the Commerce Department for tariff waivers for numerous specialty products.

“We filed approximately 300 exclusions,” Everett said. “And we’ve got, I think, 19 accepted.”

Most of the company’s applications for tariff relief are either still in limbo or were rejected, usually because an American steel company said it could provide the same steel, duty-free.

“The good news from the steel producers’ perspective is the tariffs, so far, are working,” said Scott Paul, who represents U.S. steelmakers and steelworkers as president of the Alliance for American Manufacturing.

He points to data from the American Iron and Steel Institute showing steel imports fell 35% after the tariffs took effect last year. U.S. mills are now operating at more than 80% capacity for the first time in over a decade.

“There have been about 12,000 jobs added in steel and aluminum since the tariffs were first announced, and you’ve seen more product lines come on line,” Paul said.

Domestic steelmakers are only supposed to object to an application for a tariff waiver if they can supply the same steel within eight weeks. But Rep. Walorski points to steelmakers who’ve filed objections while quoting delivery dates of up to 21 weeks. And Everett complains that U.S. mills have promised products they can’t deliver at all.

“Some of the mills just can’t produce the sizes they say that they can, and have not ever produced those sizes,” Everett said. “Unfortunately, nobody’s really checking the mills to make sure they’re capable of producing the product.”

American steelmakers have successfully blocked thousands of waiver applications, with more than half the objections coming from just a handful of big steel producers. Trade economist Christine McDaniel of the Mercatus Center at George Mason University says U.S. Steel, Nucor and AK Steel have each raised objections to duty-free imports totaling far more steel than they actually produce.

“They have a very good batting average,” she said. “Because when they object to something, it either gets denied or it just goes into the pending pile.”

Since the government has granted only a few of Omega Steel’s requests for tariff waivers, the company has had no choice but to keep paying the 25% tariff. Some steel importers absorb that extra cost. But Everett said Omega largely passes the bill along to its oil and gas customers.

“Nobody wants to pay the additional 25%,” he said. “The only people that have that kind of money are in the oil and gas business. And it’s really a pass-through for them because you’re paying for it at the pump.”

That consumer tab is likely to increase, as new and increased tariffs on Chinese imports take effect.




Source link

health news headlines provided courtesy of Medical News Today.

Advertisement

Advertisement Small

Follow Me

Collaboratively harness market-driven processes whereas resource-leveling internal or "organic" sources. Competently formulate.

View More Job Search Results

Calendar

September 2019
M T W T F S S
« Aug    
 1
2345678
9101112131415
16171819202122
23242526272829
30  

Pages

Recent Comments

    RSS Meks Blog

    • 13 best headline & blog title generator tools to easily boost your SEO September 12, 2019
      Ready to increase traffic to your website today? Use these headline generator tools and improve your click-through-rates! The post 13 best headline & blog title generator tools to easily boost your SEO appeared first on Meks.
      Ivana Cirkovic
    • How to create a Facebook Page for your blog (plus PRO tips) September 4, 2019
      Wondering how to create a Facebook Page for your blog knowing that you really do need one? Follow our in depth guide and learn how to create and manage attractive and successful Facebook Page! The post How to create a Facebook Page for your blog (plus PRO tips) appeared first on Meks.
      Ivana Cirkovic
    • Beginners guide on how to redirect a page in WordPress August 29, 2019
      Whether you’re trying to redirect a page in WordPress or just want to discover and understand why it’s important, use this guide to help you get ahead of it and learn all there is to it. The post Beginners guide on how to redirect a page in WordPress appeared first on Meks.
      Ivana Cirkovic
    • The best Facebook Groups for SEO to improve your knowledge and rankings August 21, 2019
      Are you tired of searching for the best Facebook groups for SEO to improve your knowledge and learn about the tricks from the trade? The post The best Facebook Groups for SEO to improve your knowledge and rankings appeared first on Meks.
      Ivana Cirkovic
    • Useful rank tracking plugin and tools recommendation to improve your WordPress website SEO August 15, 2019
      Are you looking for a reliable rank tracking plugin to track your rankings on search engines and improve SEO strategy? Here is our top recommendation! The post Useful rank tracking plugin and tools recommendation to improve your WordPress website SEO appeared first on Meks.
      Ivana Cirkovic
    • 6 reasons why you should never use WordPress nulled themes August 7, 2019
      What are WordPress nulled themes and should you use them, are they really that bad as people say or it’s just to scare you away from using the good stuff for free? In this article, we’re explaining in details why you should never ever use these kinds of themes. The post 6 reasons why you […]
      Ivana Cirkovic
    • Top 6 WordPress Portfolio plugins (hand-picked by designers) July 31, 2019
      Wondering what type of WordPress Portfolio plugins to use to showcase your work? Read our recommendation and choose between these top eight I present to you today. The post Top 6 WordPress Portfolio plugins (hand-picked by designers) appeared first on Meks.
      Ivana Cirkovic
    • Definitive guide to adding Facebook Pixel in WordPress July 24, 2019
      Having problems setting up Facebook Pixel in WordPress? If you want to improve your Facebook ads conversion, use this guide and learn how to properly ad Facebook Pixel in any WordPress site or blog. The post Definitive guide to adding Facebook Pixel in WordPress appeared first on Meks.
      Ivana Cirkovic
    • How to easily create WordPress dropdown menu (without coding) July 17, 2019
      Interested to create WordPress dropdown menu all by yourself and don’t know how? Just follow our guide and learn in no time! The post How to easily create WordPress dropdown menu (without coding) appeared first on Meks.
      Ivana Cirkovic
    • 12 must join Facebook groups for photographers July 11, 2019
      Whether it’s for constructive feedback or new learnings, these Facebook groups for photographers are a great networking place to be in! The post 12 must join Facebook groups for photographers appeared first on Meks.
      Ivana Cirkovic

    Text

    Distinctively utilize long-term high-impact total linkage whereas high-payoff experiences. Appropriately communicate 24/365.

    Archives