Steel and aluminum tariffs hitting Canada harder than China | Power & Politics
Steel and aluminum tariffs hitting Canada harder than China | Power & Politics We are now making it clear to China, but after years of targeting our Industries and stealing our intellectual property, the theft of American jobs and wealth has come to an end. Us tariffs on steel and aluminum are supposed to be directed at China and what the Trump Administration called unfair trading practices, but new numbers appear, contradict that and show the tariffs are hurting Canada more than China. Over the past year, the US Commerce department has excluded about 40 % of Chinese steel imports from the 25 % tariff mean, while only 2 % of Canadian steel Imports and being exempt. That means they’re allowed to enter Carefree. The discrepancy is actually even worse for aluminum, 86 % of Chinese aluminum Imports enter the US tariff free compared to less than 1 % of Canadian aluminum Imports. If China is the intent Target at the White House claims, then how do these numbers add up Christine McDaniel is a former White House. Economic advisor now is senior research. Fellow with the mercatus center at George Mason University. She joins us from Washington to see you like to see you before we start talking about the US allowing more steel tariff reform, China versus Canadian steel. Can you explain how and why can’t countries are able to avoid those tears? In the first place, the Commerce Department announced a tariff exclusion request process, and so, if you are a US manufacturer and let’s say you need particular steel or aluminum – and you wouldn’t – and you can’t get it here in the US and you I need to import it And you want it important to her free and avoid those terrasil be excluded from those terrorists. You can file a tariff exclusion, request form and you you fill out a form or your lawyer does, for you. It goes to Commerce and then they look at it in and examine it. Can you look at the data for countries that have applied for those companies that apply for those terrorists and where this deal, where it’s coming from, where the ceiling was going for? What did you find have been filed so far as of December 20th? That is, this is all over ten times the amount that covers had originally expected when this whole thing started. They expected secretary Ross said he expected about 45 request to come in and they received over 50,000 so far, so they underestimated the the the need for for frankly, for us manufacturers, access to Globe, Lake, the price of steel and aluminum, and so what we found was Not only our is the volume so much greater than what they thought, but then we looked at it by country of export. So you know when your filing needs. You can put it. You have to put on what country of export you would get it from, and so we looked at the data that way and what we found was that there was a very low amount being approved coming in from and some other countries, but especially Canada, which was Really striking, especially compared with other countries like China, other other countries across the globe that have been accused of of severe subsidies, and so the approval rate for Candace quite low compared to the approval rate for China. And then the amount of the volume that’s been approved. To come in compared to what we would Norm bring in has been a tiny fraction for candida and in pretty high for China, so it just we actually a person believe that we ran. I hadn’t. We ran the numbers three times and well yeah, if you’re supposed to be because of China at least that’s a political rhetoric right. It raises some questions I mean if it really was about China. Why did we do this in the first place, if you know they’re letting and so much more from China and so little from Canada, and then you know it also just raise the question of you know, then you look at where it is coming in from China. Many other countries, it seems just to be shuffling country country of origin around leaving us manufacturer, is facing higher prices, and it’s not clear that it’s really achieving achieving the goal. What’S the process like for a moving or or rejecting an application, and is how much discretion is built into that process has stated that they have a process and when this whole thing started, they thought it would 90 days to process each request. So and then we’ve looked at the data and 76 % of all the requests. I’Ve actually taken longer than 90 days, so it’s taking them longer than expected and then I also 4/2 are still pending. So that’s also an issue because, if you’re a US manufacturer effectively, it’s the same as being denied if it’s still pending, so when you file. So, what’s that mean you was manufactured by filatov exclusion request? Then us steel maker or us aluminum maker has 30 days to file an objection to my request and then I have seven days to rebut their objection and then they have another 7 days to Siri. But my so it’s quite a process and there’s a lot of back-and-forth, but the objections it turns out really do matter because of all of the above everything that’s been objected to is either has either been denied or pending and out of the 50,000 Tervis lose request. There’S only been one that’s been approved, it has had an objection, so the objections matter. I guess yeah, I’m just trying to understand why so many Canadian companies would be excluded. Is it because there are? I mean I got to gather from what you’re saying there must a lot of objections where the country of origin is Canada. A lot of Canada does receive a lot more objections than some of us, China and many other Asian and Middle Eastern. You know where that is. I do not know why that is. That was hurt, but those are very good questions.. The objection process is also a racist question, so it turns out there’s about a small handful of us steel makers that are filing the vast majority objections, and do we also looked at the objections and we found that the steel companies were objecting to unrealistic a quantities Of Steel compared to what they have been making on a yearly basis over the past five years, so it’s it’s not clear of Commerce is taking all that into account a lot more to dig into. Thank you very much for your time. Miss McDaniel really appreciate it. Thank you. The Trump administration’s steel and aluminum tariffs were supposed to target unfair trade from China, but it appears Canada may be facing more of an impact. Forty per cent of Chinese steel imports are excluded from U.S. tariffs, while just two per cent of Canadian imports are exempt.
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