Looming Copper Tariffs
Valued Supply Chain Partner and Copper Manufacturer
On behalf of ABC Metals, Inc. in Logansport, Indiana, I would like to speak with you regarding one of the greatest threats to US manufacturing since 2009. It is the threat of 100% ad valorem tariffs to be imposed on almost all copper and copper alloy from all EU countries. The impact was best summarized recently by an employee of a US Manufacturer, he said, “If these tariffs go through you will hear the sucking noise of US Stampers leaving the US. It will be louder than 1999.” [when the Tech Bubble Burst]. It is for this reason, I would like to share the testimony I will deliver to Ambassador Lighthizer and his panel located at the United States Trade Representative’s Office in Washington DC. the morning of August 5, 2019.
Those bearing testimony in the public hearing on Enforcement of U.S. WTO Rights in Large Civil Aircraft Dispute (USTR-2019-0003-0616) will include prominent representatives of US Manufacturers whose revenue of $1.7 trillion will be adversely affected by 100% tariffs on a variety of product. Notably the products covered include copper and copper alloys coming from all EU countries. These countries supply >16% of the total US copper consumption and supply product that is not produced in the US. One of the companies is leading this effort is Olin Brass formerly owned by Global Brass and Copper. However, Olin Brass and its sister companies AJ Oster, Chase Brass, and Somers Thin Strip were just purchased by a German Owned, Wieland Metals. By purchasing Olin Brass, Wieland took control of the last remaining US owned brass mill.
If these tariffs are allowed to proceed, Wieland Metals, will be the sole source for many products that support leading manufacturers in the US. A monopolistic shadow will be cast over all those dependent on these products. Already rumblings are being heard of stampers, metal formers, and OEM’s calculating the cost to move Mexico or elsewhere.
Please review ‘Packet #1” to see where Olin Brass petitions for includes of 10 HTS codes covering all copper coming from the EU with the exception of their German sourced product profile.
- 4/16/2019 – Metal Center News reports “Wieland-Werke AG Acquires GBC aka Olin Brass/AJ Oster
- 5/28/19- Olin Brass requests 10 HTS codes for almost all copper and brass coming from all EU countries be placed with a 100% ad veloram tariff (full invoice value)
- 7/16/19- Wieland and GBC complete their merger
- 7/24/19 GBC submits a request to appear at the Section 301 Committee hearing to push for immediate tariffs on almost all copper and copper alloys like brass and bronze coming from the EU.
- German owned GBC aka Wieland is petitioning for a virtual monopoly of more than 23 alloys in US
In ‘Packet 2” are the testimonies of more than 14 companies to note their request to not allow these tariffs to go through. Please take time to review their statements. Please speak up for your company, your employees, and your shareholders. We are seeing OEM’s and other large manufacturers begin laying out plans to move production to Mexico or Asia.
Please review your risk mitigation plans if this goes through. If you wish to share your concerns, please submit written comments on behalf of your company using your letterhead can be submitted by following the directions in the attached document, ‘Written Comment Template ABC.’
Make preparations now for the approaching storm. Click below to find my proposed oral testimony.
Dan Kendall, President
ABC Metals Inc.
500 West Clinton St.
Logansport IN USA 46947
(574) 737-2416 Office