Behind the scenes, companies fight Trump over steel tariffs

American manufacturers, energy companies and retailers relying on cheap steel are quietly lobbying President Donald Trump to impose tariffs on steel imports ahead of a possible decision by the US Department of Commerce next week.

In keeping with his 2016 campaign promise, Trump in April initiated a review of the Steel Industry Section 232, a provision in the Trade Expansion Act of 1962 to impose tariffs or quotas on steel imports if they threaten national security. This provision was previously used only twice for import verification.

The Commerce Department may publish results on the matter as early as next week, a decision that, according to three lobbyists, has been postponed due to internal debates.

US steelmakers such as US Steel Corp and AK Steel can take advantage of protectionist tariffs that will allow them to raise their prices.

But American companies that use steel in their production want to cut costs and say tariffs could lead to job losses in their industries. In addition, retailers need cheap steel for many aspects of their business, including shelving in their stores and warehouses, and for selling to consumers.

Any US tariffs could also hurt unrelated industries if other countries respond by counter-tariffs on US exports in sectors such as agriculture.