ExecutiveOrdersEO
MemoMemorandumG.W. Bush · R

Presidential Memorandum

Action Under Section 203 of the Trade Act of 1974 Concerning Certain Steel Products

President George W. Bush imposed safeguard tariffs and tariff-rate quotas on imported steel products for 3 years plus 1 day under Section 203 of the Trade Act of 1974, following ITC findings of serious injury to domestic steel industries. The measures include escalating duties ranging from 6-30% ad valorem across ten categories of steel products, with exemptions for Canada, Mexico, Israel, Jordan, and certain developing countries under specified thresholds.

Federal Register Open PDF 67 FR 10593

Impact dates

  1. Commerce Secretary to publish import licensing regulations

  2. USTR to determine product exclusions and publish Federal Register notice

  3. USTR to publish Federal Register notice of exclusion request procedures

  4. Treasury Secretary to prescribe duty deposit deadline regulation

  5. Safeguard measures effective at 12:01 a.m. EST

Key directives

  • Impose safeguard tariffs of 30%/24%/18% on certain flat steel, hot-rolled bar, cold-finished bar, tin mill products
  • Impose TRQ of 4.90/5.35/5.81 million metric tons on steel slabs with 30%/24%/18% over-quota duties
  • Impose 15%/12%/9% duties on rebar, certain welded tubular products, stainless steel bar, stainless steel rod
  • Impose 13%/10%/7% duties on carbon and alloy fittings
  • Impose 8%/7%/6% duties on stainless steel wire
  • Exempt Canada and Mexico from safeguards under NAFTA Implementation Act section 312
  • Exempt Israel and Jordan from safeguards
  • Exempt developing country WTO members under 3% individual/9% collective import thresholds
  • Instruct USTR to review developing country import data quarterly and initiate consultations if material increases occur
  • Instruct USTR to determine product exclusions and publish Federal Register notice within 120 days of Proclamation
  • Instruct USTR to publish exclusion request procedures in Federal Register within 90 days
  • Instruct USTR to conduct WTO Article 12.3 consultations and report results

Who is ordered

Timeline

Immediate

  • Safeguard measures effective March 20, 2002 at 12:01 a.m. EST
  • Proclamation signed March 5, 2002
  • Duties deposit deadline regulation required within 45 days

Near term (90d)

  • USTR to publish Federal Register notice of exclusion request procedures within 90 days
  • USTR to conduct WTO Article 12.3 consultations before effective date
  • USTR to report on consultation results to President

Long term

  • Import licensing system regulations due within 120 days of effective date
  • USTR to determine product exclusions and publish within 120 days of Proclamation
  • Annual March review for additional product exclusions
  • 3-year plus 1-day duration of safeguard measures with declining tariff rates
  • Potential reduction/modification/termination based on industry adjustment progress

Risks & tensions

  • WTO dispute risk: unilateral safeguard measures likely to trigger challenges under Agreement on Safeguards
  • Retaliatory tariff risk from affected trading partners, particularly EU and Asian steel exporters
  • U.S. consumer industry costs: higher steel prices may harm downstream manufacturers (automotive, construction, appliance)
  • NAFTA tension potential despite exemptions, due to broader trade diversion effects
  • Developing country threshold monitoring creates administrative burden and potential for abrupt policy changes
  • Quarterly review mechanism with authority to revoke exemptions introduces uncertainty for traders
  • Annual March exclusion review creates ongoing political pressure cycle
Presidential Memorandum: Action Under Section 203 of the Trade Act of 1974 Concerning Certain Steel Products · Executive Orders