Following the release of the US and EU joint statement, the American Iron and Steel Institute (AISI) has been quick to praise President Joe Biden renewed commitment to the American steel industry. However, the Coalition of American Metal Manufacturers and Users (CAMMU) has not been so generous.

Kevin Dempsey, president and CEO of the American Iron and Steel Institute (AISI), has welcomed the Biden Administration’s renewed commitment to ensuring the long-term viability of the American steel industry and the problem of excess steel capacity.

In response to a joint statement from the US and the European Union (EU) on trade, Demsey commented:

“Addressing these challenges will require the implementation of new and effective measures to eliminate government subsidies and other market distorting policies in many countries that have contributed to the ongoing global steel overcapacity crisis.

“Recognizing that these changes in government policies around the world – including in the EU – will take time and will not be easy to achieve, it is essential that the United States maintain strong and effective trade measures to prevent surges in steel imports from around the world that could quickly undermine the US industry and our national security.”

Kevin Dempsey, president and CEO of the American Iron and Steel Institute.

On 15 June the USA and the European Union released a 36-paragraph statement outlining how they would collaborate on many issues including trade, climate change and the COVID-19 pandemic. On trade between the US and the EU, one of the aims was to ‘uphold and reform the rules-based multilateral trading system’ and to ‘protect our businesses and workers from unfair trade practices, in particular those posed by non-market economies that are undermining the world trading system’.

But while the AISI is pleased with the joint statement, the Coalition of American Metal Manufacturers and Users (CAMMU) was disappointed that no agreement was reached on a timeline to end the Section 232 steel and aluminium tariffs imposed by the previous administration.

“The 232 tariffs on steel and aluminum should have never been applied to our allies in the first place. They have only served to increase the costs of goods manufactured in America compared to overseas competitors who can simply import the finished product to the US, and thus continue to erode the ability of the US manufacturing sector to compete and survive in the global market.

CAMMU statement.

According to a statement from CAMMU, “The 232 tariffs on steel and aluminum should have never been applied to our allies in the first place. They have only served to increase the costs of goods manufactured in America compared to overseas competitors who can simply import the finished product to the US, and thus continue to erode the ability of the US manufacturing sector to compete and survive in the global market. Record high prices, shortages and delays in delivery for steel and aluminium are rippling throughout downstream industries, disrupting supply chains and threatening the economic security of American workers.

“Section 232 provides no mechanism for review of the costs and benefits of the tariffs. We urge the Biden Administration to reach a resolution with our trading partners and terminate the Section 232 tariffs as quickly as possible before more damage is done to the manufacturing sector and the economy.”