U.S. Revenue Topped $1.4 Billion in Steel and Aluminum Tariff
Ferro-Alloys.com: The Congressional Research Service suggests that in less than 5 months the U.S. collected more than $1.4 billion from levies on steel and aluminum imports into the. Based on previous year export levels, the full year collection is expected to exceed $9 billion in 2018. The report prepared for the Congress members notes that tariff revenues were significantly impacted due to subsequent exclusion of certain countries by the Commerce Department.
The U.S. Customs and Border Patrol collected $1.1 billion in revenues from levies on steel imports between the period from March 23 and July 16. The revenue from aluminum tariffs was estimated at $344.2 million during this period. The recent move to hike tariff rates on certain countries such as Turkey is likely to further boost the collections. Based on the previous year import levels, the collection from steel tariffs is likely to total around $7.5 billion in 2018. The figure could reach $1.7 billion for aluminum imports.
Steel companies have benefited immensely from Trump’s tariffs. The imposition of taxes has restrained imports, boosted domestic production and has resulted in elevated price levels. Many leading steel producers including Nucor have already credited tariffs for higher prices and lofty demand. Incidentally, ArcelorMittal had recently reported highest profit in past seven years.
The tariffs have also resulted in restart of many steel mill facilities. For instance, U.S. Steel had decided to restart idled furnaces at Granite City steel works. Republic Steel had announced plans to restart the idled Lorain mill facility. Also, Britain-based Liberty House had declared historic restart of idled Georgetown steel works.
It must be noted that President Donald Trump had signed the proclamation establishing tariffs on imports of steel and aluminum on March 8, 2018, in a bid to safeguard U.S. domestic sector. Accordingly, the Commerce Department had slapped 25% tax on steel imports and 10% tax on aluminum imports from foreign countries.