Increased Tariff on Steel Imports in Section 232
Pricing Notification from Sandvik
June 4, 2018
Re: Increased tariff on steel imports as a result of Sec. 232 investigation
Dear Sandvik Valued Customer:
The recent developments on tariffs announced earlier in March by President Trump on the investigation of steel imports by the Department of Commerce, under Section 232 of the Trade Expansion Act of 1962, are impacting products that we currently supply to your company. As of June 1st, a 25% tariff shall be applied to steel articles, including stainless steels bar and tubular products imported from the EU and Canada.
Sandvik is pursuing all possible actions to minimize the impact of the tariff on our products. At this time, we shall inform our customers for stainless steel products that current price lists are void and all existing orders to be invoiced on or after Jun/1st are going to have prices adjusted according to the following structure:
- Products imported from Sandvik mills in Europe and Canada will have a 25% adder
- Tube products (cold finished) manufactured by Sandvik in USA will have a 15% adder on base price plus 25% on Alloy Surcharge
- Extruded products (hot finished) manufactured by Sandvik in USA will have a 20% adder on base price plus 25% on Alloy Surcharge
Sandvik has the ambition to deliver the best value proposition in the market and is extensively working to mitigate the effects of tariffs on our portfolio.
Our professional sales team and experts in international trade are available to support you in any way possible. Our combined domestic manufacturing capabilities and international operations will continue to support our efforts to effectively service your company.
We maintain our highest attention to the current international discussion about the tariff and are prepared to adjust as appropriate. We look forward to continue working with you and delivering extended value to your company.
Sales and Marketing Direction
Business Unit Tube America