U.S. House Oversight Committee Questions Aluminum Tariffs
If Republicans take over either the U.S. House or Senate next year, they are likely to increase their oversight of, and investigations into, Biden administration policy. A move last week by the GOP leader on the U.S. House Committee on Oversight and Government Reform indicates the Section 232 metals tariffs put into place by the Trump administration — and kept in place by the Biden administration — may be in the party’s crosshairs.
Specifically, on October 25, U.S. House Committee on Oversight and Government Reform Ranking Member James Comer (R-Ky.) raised concerns about the Biden administration’s aluminum tariff policies and their impact on U.S. consumers.
In a letter to U.S. Department of Commerce Secretary Gina Raimondo, Ranking Member Comer requested a briefing on the department’s current assessment of aluminum tariffs, enforcement of exemptions, and the impact on inflation.
“It is critical that the American people understand how the federal government formulates policies that impact costs and critical supply chain needs,” Rep. Comer said. “This is particularly necessary when American consumers are covering the cost by paying more for aluminum products, such as canned drinks …”
The congressman noted that, on September 5, 2022, Secretary Raimondo said the Commerce Department is unlikely to lift Section 232 aluminum tariffs.
MSCIhas not taken a position on this letter, but is reporting this activity for members’ information only.
As a reminder, MSCI consistently has argued that global overcapacity and other unfair trading practices, particularly by China, have harmed the U.S. steel and aluminum markets. To address this circumvention, in 2017 MSCI advised federal officials to provide relief for producers up and down the supply chain and to consider the consequences of any new trade policy, including: the economic impact of global overcapacity on the entire domestic metals supply chain; transition times and implementation rules to any new policy; availability of domestic metals to meet U.S. national security needs, as well as general industrial and consumer demand; and trade flows under current free trade agreements, including the United States Mexico Canada Agreement (USMCA).
MSCI also asked that Canada and Mexico be excluded from any trade penalties.
Click here to review all of MSCI’s advocacy on Section 232 tariffs.