Tata Steel’s operation in the Netherlands was spared 25pc US tariffs, according to the country’s minister of foreign trade, saving the company an estimated €100mn ($110mn).
Steel derivatives used in packaging and manufactured by Tata Steel in the country, avoided the US Section 232 tariff on laminated steel. About 100,000mt, or 19pc, of the steelmaker’s 531,000mt annual steel exports go to the US.
The exemption, which will last for one year, could be extended upon formally requesting a renewal. Exclusion requests processed by the US Department of Commerce are solely limited to identified products, suppliers and the countries of origin.
According to previous exclusions granted by the department, sources for laminated products, such as tin-free steel used by various US operations, include Nippon Steel and JFE Steel in Japan, and Tata Steel in the Netherlands. Specific equipment is required for lamination, but US mills have neither made capital investments nor shown their intentions to do so. The same conclusion was reached by USDOC in 2003 and again in 2018-2019 while reviewing exclusion requests.