HOTTER ON METALS: Japan, Saudi Arabia the winners in US Section 232 exclusions

The process to exclude steel and aluminium from the Section 232 import tariffs applied by the United States is having some interesting consequences.

Notably, in the event of a national security issue - which Section 232 was designed to address - the United States would theoretically rely on Japan for its steel and Saudi Arabia for its aluminium. Those countries have been granted the highest volume of exclusions: more than 1 billion kg of Japan-origin steel, equivalent to around 62% of the country’s shipments into the US in 2017, and more than 1.6 billion kg of aluminium from Saudi Arabia, around 2,379% of that country’s shipments to the US in 2017. As of mid-February, around half of the exclusions requests for material from Japan and Saudi Arabia have been dealt with by the US Department of Commerce. Japanese steel has so far requested more than 9,000 exclusions, with 38% approved and 16% denied. The rest are pending. Meanwhile, requests for exclusions on aluminium produced in Saudi Arabia total 37, with 18 approved, none yet denied and the...

Published

Andrea Hotter

February 13, 2019

20:52 GMT

New York