Remarks by Assistant U.S. Trade Representative Sushan Demirjian at the Global Forum on Steel Excess Capacity

On October 8, 2024, Assistant U.S. Trade Representative (AUSTR) Sushan Demirjian delivered remarks at the Global Forum on Steel Excess Capacity (GFSEC), underscoring the United States' ongoing concerns regarding the global oversupply of steel. The remarks highlighted the detrimental impact of non-market policies and practices on the international steel market and reiterated the U.S. commitment to addressing these issues. AUSTR Demirjian emphasized the critical need for GFSEC members to take concrete actions to tackle the root causes of excess capacity, rather than merely discussing the problem.

The issue of steel excess capacity significantly affects a wide range of stakeholders, including U.S. steel producers, workers, and global markets. For U.S. steel producers, the influx of unfairly traded steel can lead to reduced production, job losses, and financial strain, making it difficult to compete. Importers and customs brokers, while seeking competitive sourcing, must navigate a complex landscape of trade remedies and potential policy shifts designed to counteract these non-market distortions. The U.S. government views these practices as undermining fair trade and global market stability, necessitating a robust and coordinated international response.

While AUSTR Demirjian's remarks did not announce any new specific rates or dates for tariffs or trade remedies, they strongly reaffirmed the United States' resolve to utilize its existing trade enforcement tools to counter unfair trade practices. This implies that current measures, such as anti-dumping and countervailing duties, as well as Section 232 tariffs on steel imports, remain in effect and continue to be a critical component of U.S. trade policy. The U.S. stance at the GFSEC reinforces the administration's commitment to maintaining a level playing field for domestic industries. Importers should note that the absence of new announcements does not indicate a softening of policy, but rather a continued emphasis on existing enforcement mechanisms.

Given the U.S. government's consistent focus on combating steel excess capacity, importers, customs brokers, and trade compliance officers should remain vigilant. It is crucial to:

• Monitor Trade Policy Developments: Stay informed about ongoing discussions at forums like the GFSEC and any potential future policy announcements from the Office of the U.S. Trade Representative (USTR) or other relevant agencies.
• Review Existing Trade Remedies: Regularly check the status of anti-dumping (AD) and countervailing duty (CVD) orders, as well as Section 232 tariffs, applicable to steel products you import. Ensure accurate classification and valuation to comply with current regulations.
• Assess Supply Chains: Evaluate the origin and production methods of your steel imports, particularly from countries identified as contributing to global excess capacity, to understand potential risks.
• Ensure Compliance: Maintain meticulous records and ensure full compliance with all import regulations, duties, and tariffs to avoid penalties and disruptions to your supply chain.

The U.S. commitment to addressing steel excess capacity signals a continued emphasis on fair trade practices, which will likely keep steel imports under close scrutiny.