"We strongly support today's release by the Department of Commerce of the Section 232 Aluminum Report".
President Trump will ultimately have to decide between two tariff options on steel, according to Commerce Secretary Wilbur Ross. The tariffs and quotas would vary from country to country, with the highest ones going to aluminum from China and Russian Federation, among other countries, and the highest steel tariffs on imports from countries including Brazil, China and Russian Federation.
"The continued rising levels of imports of foreign steel threaten to impair the national security by placing the USA steel industry at substantial risk of displacing the basic oxygen furnace and other steelmaking capacity", report stated.
A third option called for Trump to impose global quotas based on 63 percent of each country's 2017 steel exports and based on 87 percent of their aluminum exports to the United States.
"As more than 2.2 million American jobs depend on our nation's vibrant beer industry, we urge President Trump to consider the adverse impact trade restrictions on aluminum will have on American jobs before making his final decision".
The goal of these tariffs would be to increase domestic production of steel and grow the United States steel workforce.
The recommendations pushed up Century Aluminum (CENX) almost 10% on the stock market today, while Alcoa rose just 0.7% after initially soaring. Although Trump campaigned on a protectionist platform, he has taken only modest action so far to restrict imports. The country's imports are almost four times the amount of exports, according to the report. The president could also consider the countries' willingness to work with the United States to address global excess capacity and other challenges facing the USA aluminum and steel industries. The American Automotive Policy Council, a Washington-based trade group that represents GM, Ford and Fiat Chrysler Automobiles NV, warned in May that import restrictions would hurt the auto industry and its workers.
According to the Aluminum Association, there are five US smelting facilities that are operating with three partial curtailments. "For certain types of steel, such as for electrical transformers, only one USA producer remains", the release stated. And only one company in the country produces the high-quality aluminum alloy used for military aerospace purposes.
"We really don't think there is very much likelihood of that", Ross said, "the reason being if you look at the percentage that steel constitutes of a total price of a vehicle at the retail level, it's quite small, and if you multiply that by the percentage of the tariff it gets even smaller".
An aluminum quota of 86.7% of 2017 exports.