Trump Signs 232 Proclamation
Last Thursday, President Trump took action on the 232 investigations on domestic steel (conducted under the Trade Expansion Act of 1962, as amended). The Section 232 investigation confirmed what we have known for decades: that the domestic steel industry has been victimized by unfairly traded and dumped foreign products and the resulting damage has been both massive and a threat to impair national security.
Our concerns have been heard, and the actions that will take effect are imposed tariffs on imports of steel and aluminum. This tariff should help even the playing field for the steel and aluminum manufacturing market. You can watch the signing of the tariff here. The tariff will go into effect on March 23rd. What the tariff covers are a 25% tax on imported steel products and 10% tax on imported aluminum products. Excluding Australia, Canada and Mexico, for the time being.
In response, Barry Zekelman (CEO and Chairman of Zekelman Industries) initiated a $1000 bonus for each of his 2300 employees. The $1000 bonus will be handed out each year as long as the tariffs are in place.
Watch our reaction to the tariffs via Mickey McNamara’s (EVP) interview on CNBC’s Closing Bell. (Watch Video Here)
The pipe and tube industry is a vital component of our country’s steel sector. Facilities located in over 30 states and more than 35,000 workers contribute to the nation’s economic and national security. The industry makes the products necessary to secure the country’s energy infrastructure, make critical components to supply the nation’s defense systems and relies on a robust steel industry to provide its input products to make welded and seamless pipe and tube products. Not only will this help keep those jobs safe, but provide opportunities for growth in many sectors to ensure a thriving and illustrious economy.