USA launches national security probe into power transformer components
The Commerce Department launched Section 232 national security investigation that could lead to new tariffs on imports of power transformers components.
Image source: Reuters.
USA, Washington: The U.S. Commerce Department launched another “Section 232” national security investigation that could lead to new U.S. tariffs on imports of key electrical steel components of power transformers and related goods.
The investigation into the imports of transformer laminations and wound cores is partially aimed at protecting the last U.S. manufacturer of grain-oriented electrical steel, AK Steel, recently acquired by Cleveland-Cliffs, which has argued for tariff relief.
“An assured domestic supply of these products enables the United States to respond to large power disruptions affecting civilian populations, critical infrastructure and U.S. defense industrial production capabilities,” Commerce said in a statement.
In March, Cleveland-Cliffs Chief Executive Lourenco Goncalves warned U.S. lawmakers that he would be forced to close two AK Steel plants that produce electrical steel with a loss of 1,600 jobs without better protection from imports.
Source: Reuters