December 21, 2021

NDC Trade Leaders Urge Secretary Raimondo and Ambassador Tai to Move Quickly to End Section 232 Tariffs on U.S. Allies

NDC Trade Leaders: “Eliminating these tariffs will help the U.S. compete and ease inflationary pressures for American families, workers, and manufacturers.”

Today, New Democrat Coalition (NDC) trade leaders, led by Trade Task Force Co-Chairs Ron Kind (WI-03), Lizzie Fletcher (TX-07), and NDC Chair Suzan DelBene (WA-01), urged U.S. Department of Commerce Secretary Gina Raimondo and United States Trade Representative Katherine Tai to quickly eliminate the Trump-era 232 tariffs on U.S. allies, following the recent agreement struck with the European Union. Working with the United Kingdom, Japan, and other close trading partners to end the harmful tariffs will help lower costs for Americans, reduce inflationary pressures, and provide a path forward for better coordination to address global overcapacity challenges. 

“Ending misguided Trump-era Section 232 tariffs on steel and aluminum imports from U.S. allies and trading partners will provide much needed relief for American workers, families, and manufacturers,” said NDC Chair Suzan DelBene (WA-01). “The U.S. is made stronger and safer through our economic ties with our allies and close trading partners, and the New Democrat Coalition looks forward to continuing to work with Secretary Raimondo and Ambassador Tai to advance a pro-growth trade agenda that promotes American businesses, creates jobs, and strengthens American leadership of the global rules-based order.”  

"To secure relief for Wisconsin manufacturers, farmers, and families, we need to eliminate the Section 232 tariffs on steel and aluminum imposed by the former Administration on our allies," said NDC Trade Task Force Co-Chair Ron Kind (WI-3). "I look forward to continuing to work with Secretary Raimondo and Ambassador Tai to find a path towards removing these tariffs, leveling the playing field for Wisconsinites, and addressing global overcapacity challenges." 

“We must end the harmful 232 tariffs on steel and aluminum imports from our allies imposed during the Trump Administration,” said New Democrat Coalition (NDC) Trade Task Force Co-Chair Lizzie Fletcher (TX-07).  “I was glad to work with my NDC colleagues, including Trade Task Force Co-Chair Congressman Ron Kind (WI-03), and NDC Chair Suzan DelBene (WA-01) in urging the Department of Commerce to take swift action to eliminate tariffs on our international partners to keep our domestic manufacturers competitive and lower costs for American consumers.”

The letter reads in part, 

“We are encouraged by your recent announcement of formal consultations with Japan on steel and aluminum and ask that you begin similar consultations with the United Kingdom and other close trading partners and move quickly in these discussions as downstream users continue to face astonishingly high prices in steel and aluminum. 

“It is imperative that the United States continue to set the rules for the global economy, rather than have them set by others. We look forward to working with you and President Biden in executing a trade agenda that meets the challenges and opportunities of the 21st century; promotes American workers, farmers, ranchers, and businesses; lowers costs for American families; recommits to multilateralism and U.S. global leadership; and strengthens our allies and close trading partners. A pro-growth trade agenda and sufficient supply of steel and aluminum at a cost-competitive price is critical as we implement President Biden’s historic investments in infrastructure and continue our ongoing legislative efforts to build back better and bolster U.S. innovation, competitiveness, and global supply chains.” 

The New Democrat Coalition has been critical of the previous administration’s use of Section 232 tariffs on U.S. allies and has called for their elimination. These tariffs are harmful to American workers, producers, and manufacturers and have failed to effectively address global overcapacity challenges. New Dems, led by the NDC Trade Task Force, support a trade agenda that grows the U.S. economy, creates jobs, and opens new markets for American-made products. New Dems also support embracing multilateralism and American global leadership to counter trade and market abuses of non-market economies, so the U.S. remains competitive in the 21st century global economy. 

The full letter can be read here and below.  

Secretary Raimondo and Ambassador Tai: 

As trade leaders of the New Democrat Coalition, we believe the United States is made stronger and safer through our alliances and leadership of the international order that has guided the world for nearly a century, including multilateral fora and the rules-based trading system that has helped promote American values and excellence abroad. We write to commend you on your recent actions to better coordinate with our allies and bring much-needed relief to American families, workers, farmers, and manufacturers by removing the damaging steel and aluminum tariffs imposed by the prior administration on the European Union, and we urge you to continue to transition away from the use of tariffs on our allies. We are encouraged by your recent announcement of formal consultations with Japan on steel and aluminum and ask that you begin similar consultations with the United Kingdom and other close trading partners and move quickly in these discussions as downstream users continue to face astonishingly high prices in steel and aluminum.

It is imperative that the United States continue to set the rules for the global economy, rather than have them set by others. We look forward to working with you and President Biden in executing a trade agenda that meets the challenges and opportunities of the 21st century; promotes American workers, farmers, ranchers, and businesses; lowers costs for American families; recommits to multilateralism and U.S. global leadership; and strengthens our allies and close trading partners. A pro-growth trade agenda and sufficient supply of steel and aluminum at a cost-competitive price is critical as we implement President Biden’s historic investments in infrastructure and continue our ongoing legislative efforts to build back better and bolster U.S. innovation, competitiveness, and global supply chains. 

We share your concerns with China’s overcapacity in the steel and aluminum industries. That said, imposing tariffs on our closest allies puts us at odds with our friends and strategic partners around the world, weakens our ability to counter China’s trade abuses, and places American workers and manufacturers on an uneven playing field by artificially pushing U.S. prices far above the global average. Eliminating these tariffs will help the U.S. compete and ease inflationary pressures for American families, workers, and manufacturers. Transitioning away from tariffs with other market-based economies would send a strong signal about your administration’s steadfast commitment to keeping costs down for American families who often see their wallets hit by increased costs downstream.

We continue to share your belief that a multilateral approach is needed to counter the market distortions in the steel and aluminum industries stemming mainly from China. The go-it-alone approach preferred by the prior Administration through an indiscriminate use of the Section 232 authorities has failed to stem overcapacity challenges in steel and aluminum and has weakened our own allies and trading partners. Instead, we should build on the progress made with the European Union by taking steps toward removing steel and aluminum tariffs on our closest trading partners, while also working in tandem with our allies toward more effectively countering China’s abuses. 

As members of the New Democrat Coalition’s Trade Taskforce, we are committed to pursuing a strong trade policy that prioritizes American workers, farmers, ranchers, consumers, and businesses through economic growth, multilateralism, and a pro-growth trade agenda that strengthens our strategic partnerships across the globe, opens new markets to U.S. products, and creates American jobs. We ask that you continue to work with us, consider our recommendations, and keep Congress informed of developments on these priorities as you work to revitalize U.S. trade leadership and relationships.

Sincerely,

Reps. Ron Kind, Lizzie Fletcher, Suzan DelBene, Scott Peters, Kathy Manning, Brad Schneider, Stacey Plaskett, Derek Kilmer, Don Beyer, Rick Larsen, Gregory Meeks, Stephanie Murphy, Jimmy Panetta, and Marilyn Strickland.



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