Trade with the US is “hot” because of steel – Steel news - prepainted galvalume steel coil manufacturers

Specifically, US Customs will start collecting taxes on steel imported from China and Mexico based on subsidies for producers. However, because subsidies in Canada are not significant, Washington does not impose taxes on steel products imported from the country.

According to data from the US Department of Commerce, Mexico and China construction steel exporters have enjoyed subsidies ranging from 30.3% to 177.43%. Last March, the import of structural steel from China, Mexico and Canada is hurting US producers.

The United States made the move after steel producers complained of subsidies in those countries and only two months after President Trump agreed to lift taxes on aluminum and steel products imported from Mexico. and Canada after three countries agreed to review the North American free trade agreement.

Experts say that if the President’s policies are in accordance with the plan, the US steel industry will outperform other industries. However, the US should remember the lesson since President Trump announced the steel tax on March 1, 2018, the stock price of steel producers fell sharply by 22%, while the employment rate in the reduced factories and factories.

According to a survey by the American Iron and Steel Institute, as of November 2018, even when opening and restarting a number of steel factories last year, jobs in the steel industry were still 4% lower than four years ago.

Tariffs of the US government for foreign steel have accelerated the decline in production of some factories in the US. Specifically, both US steel producers started to produce more steel when tariffs were issued. But the demand for steel has not increased, so new types have flooded the market and caused prices to fall sharply by 25%.

Shares of US Steel (X) have dropped by 70% since the Trump administration announced the tax rate. Nucor (NUE), the country’s largest steel producer, fell 25% over the same period. The Trump administration may have intended to impose taxes that would protect American businesses, but in fact it is hurting them.

Not only harming steel enterprises, metal-based industries like automobile manufacturers … also struggled with rising costs due to tariffs. Caterpillar, a producer of agricultural supplies, said it is facing $ 200 million in costs incurred by steel taxes. Many businesses have had to switch to replace or reduce investment to put pressure on steel prices.

The US economy is primarily made up of industrial services for decades. In the 21st century, American companies need to import a lot of things produced abroad. That’s why tariffs increase costs for US companies, thereby increasing prices for US consumers.

Trade experts and steel analysts are concerned, the new US tariff imposed on Chinese and Mexican steel products will continue to increase US factories’ capacity and make steel prices fall further. As a result, when tariffs are canceled, steel mills will fall back into vacancy.

Chad Bown, a senior expert at the Peterson International Institute of Economics, said that valuable evidence over the past year has shown that tariffs are damaging and do not help US government goals. .

“In the past, the US steel industry has received protection in various forms. The problem is that while they receive protection, businesses do not tend to focus on returning. should be more efficient and competitive, “he said.

However, if President Trump officially launches to build the border wall, the amount of steel that the US uses may increase very quickly and American steel businesses may benefit from the event.

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Nam Kim Steel – Vietnam Steel Manufacturers