May 10, 2022 - Washington - Senators Dianne Feinstein (D-Calif.) and Patrick Toomey (R-Pa.) on Monday released a statement commending the Biden administration for lifting the 25 
percent tariff on steel imports from Ukraine.
The senators called for this move on April 5 as a way to help Ukraine’s economy recover after the war ends. That letter is available here.
“We’re pleased that the Biden administration has decided to lift the 25 percent tariff on U.S. imports of steel from Ukraine,” the senators said in a joint statement.
“We called for this action last month because reinvigorating trade with Ukraine will have long-term benefits not only for American consumers and manufacturers, but also the well-being and security of the free world as Ukrainians seek to rebuild and reintegrate their economy after the war ends. In addition to the humanitarian assistance and economic aid the United States is providing, this provides the promise of returning Ukraine to a stable economy.
“We thank the administration for lifting this tariff and look forward to other ways Congress can help support Ukraine.”
Background:
- Ukraine is the 13th largest steel producer in the world and 80 percent of the steel the country produces is typically exported.
- Steel and related sectors comprise nearly 12 percent of Ukraine's gross domestic product, and the steel industry is a source of employment and income for many Ukrainians.
- Ukraine is experiencing the destruction of large sections of its residential and productive capacity, which has severely disrupted its ability to export. However, when the war ends and Ukraine's economy reopens, Ukraine's steel industry will be an integral part of its economic recovery.
Source: Senator Dianne Feinstein
Suspension of 232 Tariffs on Ukraine Steel
Suspended tariffs will bolster one of Ukraine’s most important industries
May 10, 2022 - On Monday, United States Secretary of Commerce Gina M. Raimondo announced the United States of America will be temporarily suspending 232 tariffs on Ukrainian steel for one year. Ukraine’s steel industry is uniquely important to the country’s economic strength, employing 1 in 13 Ukrainians with good-paying jobs.
Some of Ukraine’s largest steel communities have been among those hardest hit by Putin’s barbarism, and the steel mill in Mariupol has become a lasting symbol of Ukraine’s determination to resist Russia’s aggression. Many of Ukraine’s steel mills have continued to pay, feed, and even shelter their employees over the course of fighting. Despite nearby fighting, some Ukrainian mills have even started producing again.
Creating export opportunities for these mills is essential to their ability to continue employing their workers and maintaining one of Ukraine’s most important industries.
Statement from Commerce Secretary Gina M. Raimondo:
“Steelworkers are among the world’s most resilient—whether they live in Youngstown or Mariupol. We can’t just admire the fortitude and spirit of the Ukrainian people—we need to have their backs and support one of the most important industries to Ukraine’s economic well-being. For steel mills to continue as an economic lifeline for the people of Ukraine, they must be able to export their steel. Today’s announcement is a signal to the Ukrainian people that we are committed to helping them thrive in the face of Putin’s aggression, and that their work will create a stronger Ukraine, both today and in the future.
“I want to thank President Biden for his leadership in directing us to do all we can to support Ukraine’s people and their economy, as well as the Ukrainian leaders I have had a chance to work with over the past two months. Ukraine’s diplomatic leaders have been essential partners and advocates for their people, and we will continue to do all we can to support their work toward peace, freedom, and prosperity.”
About Commerce’s Support for Ukraine
Since Russia invaded Ukraine on February 24, the Department of Commerce has launched a series of new export control restrictions on Russia in partnership with three dozen allies, including 27 EU member states, Canada, the United Kingdom, Australia, New Zealand, Japan, South Korea, Switzerland, Iceland, and Norway.
The multilateral coordination on export controls and other areas has been impressive and led to swift development and implementation of powerful restrictions that are having a serious impact on Russia’s ability to sustain its aggression.
- Commerce has added 260 parties in Russia, Belarus, and multiple other countries to the Entity List. These entities have been involved in, contributed to, or otherwise supported the Russian security services, military and defense sectors, and military and/or defense research and development efforts. (BIS)
- U.S. exports to Russia in categories of items subject to new U.S. export licensing requirements have decreased 97% by value as compared to the same time period in 2021 (February 24-April 29). (BIS data)
- Overall U.S. exports to Russia have decreased approximately 79% by value over the same time period in 2021. (BIS data)
- Public reports indicate Russia’s two largest tank manufacturing facilities have been forced to shut down, due to an inability to access the necessary parts and equipment. (Wall Street Journal, 4/25)
- Russia is facing a critical shortage of precision-guided missiles. (Financial Times, 4/30)
Additional information on Commerce’s actions is available on the Bureau of Industry and Security’s website at: https://www.bis.doc.gov/index.php/policy-guidance/country-guidance/russia-belarus
Source: Dept. of Commerce
