(Bloomberg) -- Two senators urged President Joe Biden to remove 25% tariffs on Ukrainian steel imposed by his predecessor to help the war-torn nation stabilize and rebuild its economy.
Dianne Feinstein, a California Democrat, and Pat Toomey, a Pennsylvania Republican, wrote to Biden in a letter dated Tuesday, saying that the move would be in line with his efforts to punish Russia and help Ukraine counter the invasion.
Metal production is a “cornerstone” of Ukraine's economy, the senators said. The nation is the world's 13th-largest steel producer, and the metal and related sectors account for 12% of Ukraine's gross domestic product, with 80% of production typically exported, the senators said.
It's unclear how much immediate impact the move would have, given that Ukraine is experiencing the destruction of large sections of its economy, greatly limiting its ability to export. But the steel industry will be an integral part of the economic recovery when the war ends and the economy reopens, the senators said.
“The United States should do everything it can to ensure that the Ukrainian people can effectively rebuild after the war,” the senators said. “Lifting the U.S. tariff on steel from Ukraine is a small but meaningful way for the U.S. to signal support for Ukraine and to provide stability and improve the country's long-term economic outlook.”
The Trump administration imposed the duties on a range of nations in March 2018 using section 232, a national-security provision, in a 1962 trade law. The Biden administration in recent months negotiated deals with the European Union, Japan and the U.K. to ease the steel tariffs. Other nations including Brazil and South Korea also have negotiated quota agreements.
©2022 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
