IN A DIRECT CALL, SCHUMER URGES U.S. CUSTOMS ADMINISTRATOR TO FIX MISCLASSIFICATION OF WELDED TUBE PRODUCTS AS ‘FOREIGN-MADE’, WHICH SUBJECTS THEM TO DEVASTATING DOUBLE-TARIFF AND PUTS 100 BUFFALO JOBS AT-RISK
Schumer To U.S. Customs: Welded Tube Products Are Made in the USA; Reconsider Ill-considered and Unfair Decision To Treat Welded’s Product Like A Canadian Product
U.S. Senate Minority Leader Charles E. Schumer today spoke directly with U.S. Customs Commissioner Kevin K. McAleenan, to urge him to immediately reverse CBP’S ill-considered and unfair decision to treat Welded Tube product like a Canadian product. Schumer said this decision has resulted in Welded Tube having to pay a full 25 percent United States steel tariff (232 tariffs) in addition to another possible 25 percent tariff by Canada in response to the administration’s 232 tariffs on steel. Schumer said this double tariff is devastating for Welded Tube and could put New York jobs at real risk.
“Welded Tube of Lackawanna is getting unfairly caught in the trade battle cross-fire and – if the Customs officials don’t fix their mistaken classification of their product as foreign -- the casualties could be jobs right here in the USA,” said Senator Schumer. “Their product is made right here in Western New York, but due to a misclassification by CBP their product is being hammered coming and going across the border with a devastating double-tariff that will drive up costs and put the hard-working people at this firm at risk.”
Schumer added, “That is why I personally called Commissioner McAleenan and urged him to take a close look and help rectify the situation. He was focused and knowledgeable, and I am hopeful he will respond in a positive way.”
Schumer explained that Welded produces Oil County Tubular Goods (OCTG) at their Buffalo facility and then processes this into finished casing at their Ontario plant. This product is then sold to U.S consumers. Despite the finished product’s classification as a U.S. origin good under NAFTA, making it duty-free because it is not “substantially transformed” in Canada, U.S. Customs has decided to treat it as a Canadian good and apply the full value of the 25 percent steel tariff. In addition, Welded is also facing a 25 percent Canadian tariff, as Canada’s current retaliation list includes OCTG. Canada has said that they will retaliate on July 1st.