API calls for oil, gas industry exemptions from steel tariffs
The American Petroleum Institute (API) led a coalition of eight industry groups in calling on the U.S. Department of Commerce to exempt natural gas and oil companies from steel tariffs and quotas handed down by the Trump administration under Section 232 of the Trade Expansion Act.
“U.S. natural gas and oil companies should be granted relief from the tariffs and quotas on imported steel that will harm U.S. businesses, our economy, and American consumers,” Kyle Isakower, the vice president or regulatory and economic policy at API, said. “Tariffs will raise the cost of imported steel by 25 percent, while quotas will stop U.S. businesses from receiving steel for U.S. energy projects around the country — harming the president’s agenda of continuing our energy renaissance, strengthening our infrastructure and creating U.S. jobs.”
API joined the American Exploration & Production Council, the American Gas Association, the Association of Oil Pipelines, GPA Midstream Association, the Independent Petroleum Association of America, the Interstate Natural Gas Association of America, the Petroleum Equipment & Services Association, the Interstate Natural Gas Association of America and the U.S> Oil & Gas Association in issuing the call in a public comment on the Section 232 Interim Final Rule.
The groups’ public comment letter states the final rule should make clear that exclusions are applied both retrospectively and prospectively, and the Department of Commerce should define and release metrics to determine if U.S. steel manufacturers can meet demand. The groups also argued that “categorical exclusions” should be granted for any products that cannot be sourced from the United States.
“Any disruption of our complex global supply chains of specialty quality steel — in the quantities we need for U.S. energy projects — could negatively impact building energy infrastructure that benefits consumers, the U.S. military and manufacturers,” Isakower said.
API and the other industry groups called on the Department of Commerce to “minimize disruptions to business and to American job creation” by finalizing the rule as soon as possible.
