New London — It's a game of wait and see for the operator of the city's deepwater port, which averages about two shipments of steel per month, after President Donald Trump announced late last week that the U.S. will impose steep tariffs on imported steel and aluminum.

"We're watching it closely," said Frank Vannelli, senior vice president of commercial and business development for Logistec, the port operator.

Trump has imposed import tariffs of 25 percent on steel and 10 percent on aluminum, which are set to take effect on March 23. Steel and aluminum imports from Canada and Mexico are excluded for now, as the administration works to renegotiate the North American Free Trade Agreement, or NAFTA, with those two countries.

Of the steel tariff specifically, Vannelli said, "Will it impact us? We just don't know yet. We're hoping not." He said Logistec's customers are also taking a "wait and see attitude."

Steel, primarily from Belgium and Germany, is the main commodity coming in to New London's port. If steel prices go up then buyers might purchase less, and the port wouldn't see the volumes it has in the past, Vanelli said. But, he added, the port has diversified and also brings in high volumes of salt and lumber, and is "working on a few other commodities." Vanelli has predicted a record year of cargo shipments for the port in 2018.

"We're not panicking," he said.

Additionally, if products cannot be produced domestically, a buyer can request an exemption, according to Vannelli. Trump has left the door open to other exemptions as well. Some in the European steel industry hope they get spared and are given the exemption provided to Canada and Mexico. The European Union trade chief has pushed for an exemption and has asked for clarity on the procedure for an exemption.

The Connecticut Port Authority, a quasi-public agency responsible for promoting the state's maritime economy, including its three deepwater ports, has approached Logistec, and the terminal operators at the state's other two deepwater ports in New Haven and Bridgeport, about "managing" the tariffs through foreign trade zones, also known as free trade zones, said executive director Evan Matthews.

"New London's Foreign Trade Zone (is) a designated area adjacent to downtown that, for customs purposes, is considered outside the U.S. Nearly any imported merchandise can be brought into a Zone for almost any kind of manipulation, duty-free," according to the city's website.

State Pier is within the trade zone.  

j.bergman@theday.com