    [United States Statutes at Large, Volume 132, 115th Congress, 2nd Session]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    Proclamation 9705 of March 8, 2018

    Adjusting Imports of Steel Into the United States

    By the President of the United States of America

    A Proclamation

    1. On January 11, 2018, the Secretary of Commerce (Secretary)
    transmitted to me a report on his investigation into the effect of
    imports of steel mill articles (steel articles) on the national security
    of the United States under section 232 of the Trade Expansion Act of
    1962, as amended (19 U.S.C. 1862).
    2. The Secretary found and advised me of his opinion that steel articles
    are being imported into the United States in such quantities and under
    such circumstances as to threaten to impair the national security of the
    United States. The Secretary found that the present quantities of steel
    articles imports and the circumstances of global excess capacity for
    producing steel are ``weakening our internal economy,''; resulting in
    the persistent threat of further closures of domestic steel production
    facilities and the ``shrinking [of our] ability to meet national
    security production requirements in a national emergency.''; Because of
    these risks and the risk that the United States may be unable to ``meet
    [steel] demands for national defense and critical industries in a
    national emergency,''; and taking into account the close relation of the
    economic welfare of the Nation to our national security, see 19 U.S.C.
    1862(d), the Secretary concluded that the present quantities and
    circumstances of steel articles imports threaten to impair the national
    security as defined in section 232 of the Trade Expansion Act of 1962,
    as amended.
    3. In reaching this conclusion, the Secretary considered the previous
    U.S. Government measures and actions on steel articles imports and
    excess capacity, including actions taken under Presidents Reagan, George
    H.W. Bush, Clinton, and George W. Bush. The Secretary also considered
    the Department of Commerce's narrower investigation of iron ore and
    semi-finished steel imports in 2001, and found the recommendations in
    that report to be outdated given the dramatic changes in the steel
    industry since 2001, including the increased level of global excess
    capacity, the increased level of imports, the reduction in basic oxygen
    furnace facilities, the number of idled facilities despite increased
    demand for steel in critical industries, and the potential impact of
    further plant closures on capacity needed in a national emergency.
    4. In light of this conclusion, the Secretary recommended actions to
    adjust the imports of steel articles so that such imports will not
    threaten to impair the national security. Among those recommendations
    was a global tariff of 24 percent on imports of steel articles in order
    to reduce imports to a level that the Secretary assessed would enable
    domestic steel producers to use approximately 80 percent of existing
    domestic production capacity and thereby achieve long-term economic
    viability through increased production. The Secretary has also
    recommended that I authorize him, in response to specific requests from
    affected domestic parties, to exclude from any adopted import
    restrictions those steel articles for which the Secretary determines
    there is a lack of sufficient U.S. production capacity of comparable
    products, or to exclude steel articles from such restrictions for
    specific national security-based considerations.

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    5. I concur in the Secretary's finding that steel articles are being
    imported into the United States in such quantities and under such
    circumstances as to threaten to impair the national security of the
    United States, and I have considered his recommendations.
    6. Section 232 of the Trade Expansion Act of 1962, as amended,
    authorizes the President to adjust the imports of an article and its
    derivatives that are being imported into the United States in such
    quantities or under such circumstances as to threaten to impair the
    national security.
    7. Section 604 of the Trade Act of 1974, as amended (19 U.S.C. 2483),
    authorizes the President to embody in the Harmonized Tariff Schedule of
    the United States (HTSUS) the substance of acts affecting import
    treatment, and actions thereunder, including the removal, modification,
    continuance, or imposition of any rate of duty or other import
    restriction.
    8. In the exercise of these authorities, I have decided to adjust the
    imports of steel articles by imposing a 25 percent ad valorem tariff on
    steel articles, as defined below, imported from all countries except
    Canada and Mexico. In my judgment, this tariff is necessary and
    appropriate in light of the many factors I have considered, including
    the Secretary's report, updated import and production numbers for 2017,
    the failure of countries to agree on measures to reduce global excess
    capacity, the continued high level of imports since the beginning of the
    year, and special circumstances that exist with respect to Canada and
    Mexico. This relief will help our domestic steel industry to revive
    idled facilities, open closed mills, preserve necessary skills by hiring
    new steel workers, and maintain or increase production, which will
    reduce our Nation's need to rely on foreign producers for steel and
    ensure that domestic producers can continue to supply all the steel
    necessary for critical industries and national defense. Under current
    circumstances, this tariff is necessary and appropriate to address the
    threat that imports of steel articles pose to the national security.
    9. In adopting this tariff, I recognize that our Nation has important
    security relationships with some countries whose exports of steel
    articles to the United States weaken our internal economy and thereby
    threaten to impair the national security. I also recognize our shared
    concern about global excess capacity, a circumstance that is
    contributing to the threatened impairment of the national security. Any
    country with which we have a security relationship is welcome to discuss
    with the United States alternative ways to address the threatened
    impairment of the national security caused by imports from that country.
    Should the United States and any such country arrive at a satisfactory
    alternative means to address the threat to the national security such
    that I determine that imports from that country no longer threaten to
    impair the national security, I may remove or modify the restriction on
    steel articles imports from that country and, if necessary, make any
    corresponding adjustments to the tariff as it applies to other countries
    as our national security interests require.
    10. I conclude that Canada and Mexico present a special case. Given our
    shared commitment to supporting each other in addressing national
    security concerns, our shared commitment to addressing global excess
    capacity for producing steel, the physical proximity of our respective
    industrial bases, the robust economic integration between our

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    countries, the export of steel articles produced in the United States to
    Canada and Mexico, and the close relation of the economic welfare of the
    United States to our national security, see 19 U.S.C. 1862(d), I have
    determined that the necessary and appropriate means to address the
    threat to the national security posed by imports of steel articles from
    Canada and Mexico is to continue ongoing discussions with these
    countries and to exempt steel articles imports from these countries from
    the tariff, at least at this time. I expect that Canada and Mexico will
    take action to prevent transshipment of steel articles through Canada
    and Mexico to the United States.
    11. In the meantime, the tariff imposed by this proclamation is an
    important first step in ensuring the economic viability of our domestic
    steel industry. Without this tariff and satisfactory outcomes in ongoing
    negotiations with Canada and Mexico, the industry will continue to
    decline, leaving the United States at risk of becoming reliant on
    foreign producers of steel to meet our national security needs--a
    situation that is fundamentally inconsistent with the safety and
    security of the American people. It is my judgment that the tariff
    imposed by this proclamation is necessary and appropriate to adjust
    imports of steel articles so that such imports will not threaten to
    impair the national security as defined in section 232 of the Trade
    Expansion Act of 1962, as amended.
    NOW, THEREFORE, I, DONALD J. TRUMP, President of the United States of
    America, by the authority vested in me by the Constitution and the laws
    of the United States of America, including section 301 of title 3,
    United States Code, section 604 of the Trade Act of 1974, as amended,
    and section 232 of the Trade Expansion Act of 1962, as amended, do
    hereby proclaim as follows:
    (1) For the purposes of this proclamation, ``steel articles''; are
    defined at the Harmonized Tariff Schedule (HTS) 6-digit level as:
    7206.10 through 7216.50, 7216.99 through 7301.10, 7302.10, 7302.40
    through 7302.90, and 7304.10 through 7306.90, including any subsequent
    revisions to these HTS classifications.
    (2) In order to establish increases in the duty rate on imports of steel
    articles, subchapter III of chapter 99 of the HTSUS is modified as
    provided in the Annex to this proclamation. Except as otherwise provided
    in this proclamation, or in notices published pursuant to clause 3 of
    this proclamation, all steel articles imports specified in the Annex
    shall be subject to an additional 25 percent ad valorem rate of duty
    with respect to goods entered, or withdrawn from warehouse for
    consumption, on or after 12:01 a.m. eastern daylight time on March 23,
    2018. This rate of duty, which is in addition to any other duties, fees,
    exactions, and charges applicable to such imported steel articles, shall
    apply to imports of steel articles from all countries except Canada and
    Mexico.
    (3) The Secretary, in consultation with the Secretary of State, the
    Secretary of the Treasury, the Secretary of Defense, the United States
    Trade Representative (USTR), the Assistant to the President for National
    Security Affairs, the Assistant to the President for Economic Policy,
    and such other senior Executive Branch officials as the Secretary deems
    appropriate, is hereby authorized to provide relief from the additional
    duties set forth in clause 2 of this proclamation for any steel article
    determined not to be produced in the United States in a suffi

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    cient and reasonably available amount or of a satisfactory quality and
    is also authorized to provide such relief based upon specific national
    security considerations. Such relief shall be provided for a steel
    article only after a request for exclusion is made by a directly
    affected party located in the United States. If the Secretary determines
    that a particular steel article should be excluded, the Secretary shall,
    upon publishing a notice of such determination in the Federal Register,
    notify Customs and Border Protection (CBP) of the Department of Homeland
    Security concerning such article so that it will be excluded from the
    duties described in clause 2 of this proclamation. The Secretary shall
    consult with CBP to determine whether the HTSUS provisions created by
    the Annex to this proclamation should be modified in order to ensure the
    proper administration of such exclusion, and, if so, shall make such
    modification to the HTSUS through a notice in the Federal Register.
    (4) Within 10 days after the date of this proclamation, the Secretary
    shall issue procedures for the requests for exclusion described in
    clause 3 of this proclamation. The issuance of such procedures is exempt
    from Executive Order 13771 of January 30, 2017 (Reducing Regulation and
    Controlling Regulatory Costs).
    (5) (a) The modifications to the HTSUS made by the Annex to this
    proclamation shall be effective with respect to goods entered, or
    withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern
    daylight time on March 23, 2018, and shall continue in effect, unless
    such actions are expressly reduced, modified, or terminated.
    (b) The Secretary shall continue to monitor imports of steel
    articles and shall, from time to time, in consultation with the
    Secretary of State, the Secretary of the Treasury, the Secretary of
    Defense, the USTR, the Assistant to the President for National Security
    Affairs, the Assistant to the President for Economic Policy, the
    Director of the Office of Management and Budget, and such other senior
    Executive Branch officials as the Secretary deems appropriate, review
    the status of such imports with respect to the national security. The
    Secretary shall inform the President of any circumstances that in the
    Secretary's opinion might indicate the need for further action by the
    President under section 232 of the Trade Expansion Act of 1962, as
    amended. The Secretary shall also inform the President of any
    circumstance that in the Secretary's opinion might indicate that the
    increase in duty rate provided for in this proclamation is no longer
    necessary.
    (6) Any provision of previous proclamations and Executive Orders that is
    inconsistent with the actions taken in this proclamation is superseded
    to the extent of such inconsistency.
    IN WITNESS WHEREOF, I have hereunto set my hand this eighth day of
    March, in the year of our Lord two thousand eighteen, and of the
    Independence of the United States of America the two hundred and forty-
    second.
    DONALD J. TRUMP

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