Iowa Republican Sens. Chuck Grassley and Joni Ernst have called on the Department of Commerce (DOC) to provide an exemption from the Section 232 tariffs on steel, noting that “opportunists” are offering extremely high estimates to Iowans for the steel they need to rebuild their homes, farms, businesses, and communities.
Specifically referencing steel grain bins that need to be replaced after being damaged or destroyed by the derecho storm, the lawmakers said a “number of farmers have told us that the increased prices for steel would collectively add hundreds of millions of dollars in costs for them.” They pointed to testimony Commerce Secretary Wilbur Ross delivered when asked in June 2018 about when consumers would see relief from high steel prices. Ross testified that there had been “speculative activity” that had been taking place by “various intermediary parties,” noting DOC was investigating the situation.
The lawmakers urged the exemption be ordered by Commerce as the current exclusion process involves number forms to be submitted and can take months to reach a conclusion. “We can assure you that you don't need paperwork or more than a moment to see that either of your Department's criteria is met here,” the letter stated. They also pointed out lifting the tariffs would not injure domestic steel producers but allow for imports to increase supply in this emergency situation, something which the letter points out Commerce has indicated it needs relative to the authority to have “flexibility in case of an emergency.” The two conclude, “Well, there's clearly one now.”