Welded Tube adds 'temporary' 25% tariff charge
Jun 04, 2018 | 11:48 AM
NEW YORK — Welded Tube of Canada will tack on a "temporary tariff surcharge of 25%" to shipments bound for the United States from its Canadian mills effective Monday June 4, the company said.
Emphasizing that it is acting "with considerable regret," the Concord, Ontario-based steel tubing producer announced the move after US President Donald Trump's administration placed a 25% Section 232 tariff on steel imports from Canada and Mexico as of June 1. Welded Tube promises to refund the surcharge if the US rescinds the tariff and returns the money.
"Welded Tube will be working assiduously in the days ahead to mitigate and, if possible, eliminate the tariff surcharge as soon as possible," the company said in a letter to customers on Monday.
Welded Tube's handling of the Section 232 steel tariff differs from Chicago-based competitor Atlas Tube, which last week assured customers that it would pay the duty on shipments into the United States from Canadian operations.
Welded Tube produces electric-resistance welded hollow structural sections, mechanical tubing and oil country tubular goods. The company has an annual capacity of 700,000 tons.