Trump expands tariffs on steel and aluminum products

President Donald Trump recently extended tariffs to not just imported steel and aluminum, but also certain products made from those imported materials, such as automotive stamping parts. Getty Images

President Donald Trump quietly expanded the Section 232 tariffs on steel and aluminum products in late January.

The 25% tariff on steel and 10% tariff on aluminum, meant to prop up domestic suppliers of metal to the defense industry, have badly hurt some metalworking companies that have besieged the U.S. Department of Commerce with pleas for exemptions, some of which have been granted and many others that have not. But if the original tariffs have been tough on consumers of foreign steel and aluminum, their problems will now multiply given the Trump Jan. 24 extension of those tariffs to the derivatives of aluminum and steel articles.

The secretary of commerce made the call on what qualifies as a “derivative” of an aluminum article or steel article by determining whether all of three conditions are met:

1. The aluminum or steel article represents, on average, two-thirds or more of the total cost of materials of the derivative article.
2. Import volumes of such derivative article increased year-to-year since June 1, 2018, compared to the two preceding years.
3. Import volume increases above 4% after the tariffs were imposed.

The derivative aluminum and steel tariffs will not apply to Argentina, Australia, Canada, and Mexico, with Brazil and South Korea also exempted from the derivative steel tariffs. Products subject to the new tariffs specifically cited by Trump in his late January proclamation include steel nails, tacks, drawing pins, corrugated nails; staples and aluminum stranded wire, cables, plaited bands; and bumper and body stampings of aluminum and steel for motor vehicles and tractors. The additional duties are being imposed because both steel and aluminum manufacturers are still below target capacity utilization levels.

EPA Changes to Lead Rule to Spur Demand for Plumbing Products

Pipes and fittings of various types used in residential, commercial, and school plumbing systems will have to be replaced in much larger quantities if the Environmental Protection Agency (EPA) finalizes changes to its lead and copper rule.

In this instance, only pipes and fixtures containing lead are at issue. Lead was widely used in plumbing materials until Congress banned its use in 1986. An estimated 6.3 million to 9.3 million homes are served by lead service lines in thousands of communities nationwide, in addition to millions of older buildings with lead solder and brass/bronze fittings and faucets across the U.S.

The EPA is proposing revisions that would require water systems to take actions to lower lead tap water levels than currently required to reduce lead in drinking water and better protect public health. The agency is proposing to establish a new lead “trigger level” of 10 micrograms per liter in addition to the 15 mg/l lead action level in the current lead and copper rule. At this trigger level, systems that currently treat for corrosion would be required to re-optimize their existing treatment. Systems that do not currently treat for corrosion would be required to conduct a corrosion control study.

“The new requirements for lead service line inventories and replacement plans and lead sampling in all schools and child care facilities will necessitate significant resources for both regulated entities and primacy agencies to implement after the rule is finalized,” said Toby Baker, executive director, Texas Commission on Environmental Quality.

Cities, counties, and states will be able to use funds through the EPA’s Drinking Water State Revolving Fund and the Water Infrastructure Finance and Innovation Act loan program to update and replace drinking water infrastructure. In addition, the Water Infrastructure Improvements for the Nation Act, for which Congress appropriated $50 million in FY2018, opens the door to grants to small and disadvantaged communities for developing and maintaining infrastructure, for lead reduction projects, and to support the voluntary testing of drinking water in schools and child care centers.