US hike steel, aluminum tariff imported equipment, railwaycar, EV parts
The US Commerce Department said on Tuesday that it is traveling hiking on more than 400 products including wind turbines, mobile cranes, equipment, bulldozers and other heavy equipment along with steel and aluminum tariffs with steel and aluminum tariffs on railwaycar, motorcycles, sea engines, furniture and hundreds of other products.
The department said that 407 product categories are being added to the list of “derivative” steel and aluminum products, which is covered by sectoral tariffs, with 50 percent tariff on any steel and aluminum content of these products, along with a country rate on non-steel and non-aluminum materials.
Evercore ISI – An American Research Department – said in a research note that the move includes more than 400 product codes representing more than $ 200 billion in imports last year and it is estimated that it will increase the overall effective tariff rate by about one percentage points.
The department is also connecting imported parts for automotive exhaust systems and electrical steel for electrical steel, which are required for components including new tariffs, along with buses, air conditioners, along with refrigerators, freezers and dryers.
A group of foreign vehicle manufacturers urged the department not to add parts, saying that the US does not have the domestic capacity to handle the current demand.
Tesla failed to reject the request to add steel products used to electric vehicle motors and wind turbines from the Department of Commerce, saying that there was no available steel to produce steel for use in EVS’s drive unit.
New tariffs are immediately effective and also cover compressors and pumps and other individual care packages such as metal and aerosol cans in imported cosmetics.
“Today’s action expands the reach of steel and aluminum tariffs and closes the path for the perimeter – supporting the continuous revival of American steel and aluminum industries,” said Jeffrey Caselor, Secretary, Industry and Security.
Steelmakers, including Cleveland Cliffs and others, had petitioned the administration to expand the tariffs to include additional steel and aluminum auto parts.
