Biden Administration Could End Tariffs On Ukrainian Steel Exports

According to a report from Bloomberg, the Biden administration is considering suspending U.S. Section 232 tariffs on Ukrainian steel imports.

The news report did say no final decision has been made, a decision is not imminent, and President Joe Biden has not even been presented with the proposal. (PLEASE NOTE: MSCI is reporting this news for members’ information only. The organization has not taken a position on this matter.)

Some lawmakers on Capitol Hill have been pushing the administration to lift the tariffs as part of the United States’ efforts to help the Ukraine stave off a Russian invasion and as a huge steel plant in Mariupol, Ukraine, has become a bastion for holdout Ukrainian forces.

If implemented, the move would be mostly symbolic, Bloomberg said. In 2021, Ukraine shipped only 130,652 metric tons of steel to the United States, just under 0.5 percent of total imports of the metal. As a reminder, countries like Canada, Mexico, and Japan, along with the United Kingdom and European Union, already have most of their steel exports exempted from the Section 232 tariffs.

The European Union (EU) already has proposed temporarily removing all remaining tariffs and quota requirements on Ukrainian exports, including steel, industrial goods, and agricultural products. Read more about the EU’s efforts here.