WASHINGTON — Now that auto industry opponents to steel and aluminum tariffs have lost their fight, they are turning to their next battle — securing exemptions to avoid paying them.
In signing the metals tariffs into action last week, President Donald Trump signaled some flexibility toward Canada and Mexico, if they are willing to compromise on North American Free Trade Agreement negotiations, and toward nations that contribute to military alliances. His tariff proclamation — 10 percent on aluminum and 25 percent on steel — allows for an appeals process, and auto industry players intend to use it.
The Motor & Equipment Manufacturers Association is already urging the Commerce Department to provide blanket exemptions, upfront, for specialty metals imported by component manufacturers that are in short supply or unavailable from a domestic producer — criteria for exemption consideration.
Last year, the trade association provided Commerce an extensive list of steel and aluminum products that should be excluded from import restrictions to prevent harm to the auto industry. It said several foreign steel producers have worked closely with U.S. suppliers to develop specialized steel products and that the collaboration benefits the U.S. by improving products.
“These products should be excluded prior to the tariff going into effect,” association leader Steve Handschuh said in a Feb. 13 letter to Trump. “Individual companies should not have to separately apply for exemptions or exclusion for these specialty products. Such a requirement would place a significant regulatory burden on the industry, particularly smaller manufacturers that lack internal trade and compliance personnel.”
The association has recommended a process that would allow industry representatives, such as trade associations, to apply for exemptions on behalf of multiple member companies.
Ann Wilson, the association’s senior vice president of government relations, told Automotive News that it is not only the quantity, but the quality, of steel and aluminum that is important in making certain products.
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