Associations submit ideas for relief from steel import tariffs

The American Petroleum Institute and eight other national oil and gas trade associations jointly called for companies in the industry to receive relief from anticipated US steel tariffs and quotas. In their May 18 comments, they outlined ways the US Department of Commerce could improve the relief approval process so as not to sever supply chains to industry.

“Tariffs will raise the cost of imported steel by 25%, while quotas will stop US businesses from receiving steel for US energy projects around the country, harming the president’s agenda of continuing our energy renaissance, strengthening our infrastructure, and creating US jobs,” said Kyle Isakower, API vice-president for regulatory and economic policy.

“Any disruption of our complex global supply chains of specialty quality steel—in the quantities we need for US energy projects—could negatively impact building energy infrastructure that benefits consumers, the US military, and manufacturers,” Isakower said.

Officials from the Independent Petroleum Association of America, Interstate Natural Gas Association of America, American Gas Association, Association of Oil Pipe Lines, American Exploration & Production Council, GPA Midstream Association, Petroleum Equipment & Services Association, and US Oil & Gas Association also signed the comments.

Impediments to developing, transporting, refining, and distributing US oil and gas resources could reduce supplies of critical fuels used by consumers, the US military, and manufacturers, their letter said. This could have “the unintended consequence of negatively affecting the national security upon which these tariffs are premised,” it suggested.

The recommendations for the final rule included:

• Making clear that exclusions that are granted apply both retrospectively and prospectively so they do not have costly consequences or create confusion.

• Granting relief for purchases made before tariffs are announced.

• Defining and determining metrics that will be used to determine whether US steel manufacturers have the capacity to meet demand.

• Granting exclusion for products DOC determines are not made in the US.

• Deferring to companies’ own quality standards in determining if US steel manufacturers have the capacity to meet demand for satisfactory quality steel for oil and gas applications.

Contact Nick Snow at [email protected].