Commerce Secretary Wilbur Ross told Congress Wednesday that his department had started an investigation into steel and aluminum prices, arguing that a recent increase may be exceeding what would be expected as a result of the U.S.’ adoption of tariffs of 25 percent on steel imports.
“What has happened, and it has been been a very unsatisfactory thing, there has been a lot of speculative activity, storing inventory, withholding product from the market by various intermediary parties, so the price of steel and for a while the price of aluminum went up far more than is justified by the tariffs,” Ross told the Senate Finance Committee Wednesday.
Ross said the department is probing whether people were illegitimately “profiteering” from the tariffs, characterizing the price increase as a result of “anti-social behavior. There is no reason for tariffs to increase the price of steel by far more than the price of the tariff,” he said. He gave no indication of when the probe would be finished.
Sen. Michael Bennet, D-Colo., scoffed at Ross’ argument. “Describing these steel prices that are going up as ‘anti-social behavior’ and not as a result of the tariffs is not true.”
Bennet asked Ross if he thought the antisocial behavior he described was in some way provoked by the tariffs.
“No sir,” Ross replied. “I think they viewed the tariffs as an opportunity for them to profiteer.”
