Tariff Exclusions: Section 232 Tariffs
The following information is part of the Tariff Exclusion Quantification Initiative at the Mercatus Center. For similar information on Section 301 tariffs, please visit the Section 301 tariffs page. For interactive heat maps displaying the Section 232 tariff microdata, please visit our tariffs interactive page.
Section 232 Tarrifs: Thousands of Exclusion Requests from US Firms
Under Section 232 of the Trade Expansion Act of 1962, the Commerce Department conducted investigations to determine whether steel and aluminum import tariffs pose a threat to national security. On March 8, 2018, President Trump used the recommendations from these Commerce reports to impose a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum. A tariff is a tax levied on imported goods and paid by the importer. Consumers generally bear the burden of the tax when the import is a final consumer good, and manufacturers generally bear the burden when the import is an intermediate good such as steel or aluminum.
In response to these increased costs, US firms and individuals that use steel and aluminum may file a request to be excluded from these tariffs. The exclusion request process is conducted by the Bureau of Industry and Security (BIS) of the Commerce Department, and all requests are made publicly available on regulations.gov. US producers of steel and aluminum have the ability to object to any exclusion request within 30 days of its submission. Multiple objections can be made for a single exclusion request.
As of March 18, 2019, there have been a total of 51,345 steel and aluminum tariff exclusion requests filed by 905 firms in 303 congressional districts across 46 states plus Puerto Rico. Of these filings, 45,328 exclusion requests ask for an exemption from the steel tariffs, and steel manufacturers have filed 19,543 objections. The BIS has reached a decision on 61.9 percent of the steel exclusion requests, 21,464 have been approved and 6,588 have been denied. Additionally, 6,017 exclusion requests ask for an exemption from the aluminum tariffs, and aluminum manufacturers have filed 935 objections. The BIS has reached a decision on 78.2 percent of the aluminum exclusion request, 4,069 have been approved and 637 have been denied.
The datasets used to create the interactive maps can be downloaded below. In addition, the microdata at the exclusion request level that was used to calculate the data at the state and congressional district level can be downloaded below. When using the data, please refer to the codebook. The maps and datasets will be regularly updated as additional exclusion requests and objections are submitted.
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