U.S. Iron, Steel And Ferroalloy Market. Analysis And Forecast to 2030
Update: COVID-19 Impact
With Proposed U.S. Import Tariffs on Steel and Aluminum, a New Wave of the Trade War Is Coming
On February X, the U.S. Commerce Department outlined an array of options that President Donald Trump could take to help domestic steel manufacturers to stay competitive on the local market, including a tariff of at least X percent on steel imports from all countries. This measure will be considered as an unfriendly step, not only by China, the world’s largest steel producer and the strongest U.S. competitor on the global market, but also by U.S. allies like Canada and the EU, who will suffer dramatically from the imposed tariff barriers.
This protectionist action was supported by the United Steelworkers Union and American steel companies, who claim that domestic manufacturers have suffered from the flood of cheap imports, particularly from China, thereby losing their position on the oversaturated market. Severe competition could result in a price slump, closing production facilities and cutting jobs.
It is no surprise that such ideas are very similar to President Trump’s approach to add new jobs by tightening trade agreements to the benefit of the U.S. Trump has already withdrawn the United States from the Asia-Pacific Trade Partnership, and has promised to do the same with NAFTA; renegotiations are also now in progress concerning the U.S.-Korea Free Trade Agreement (KORUS FTA).
While general talks on breaking up these agreements faces moderate negative reaction from U.S. trade partners, imposing tariff barriers would trigger considerable backlash.
Even though China is the world’s biggest producer of steel and aluminum, the volume of Chinese direct imports onto the U.S. market remains relatively insignificant: China’s share in total iron and steel imports did not exceed X% (based on USD, 2016). Canada, a close U.S. ally, assumed the lion’s share in terms of its total imports (X%), meaning that it would suffer badly from imposed barriers.
China has already replied that these measures are groundless and that it reserves the right to retaliate if they are enforced. Japan and India, ranking second in the list of biggest producers, expressed their concern and regret, but are not in a rush to expose any retaliatory actions.
So, we’re waiting for Canada’s reaction. It’s worth noting that the trade dispute between Donald Trump and Justin Trudeau intensified after the U.S. proposed higher tariffs on dairy and lumber from Canada last year. As for now, the Canadian government spokesman Adam Austen just made the point that Canada buys more U.S. steel than the rest of the world combined.
Source: IndexBox AI Platform
This report provides an in-depth analysis of the market for iron, steel and ferroalloy in the U.S.. Within it, you will discover the latest data on market trends and opportunities by country, consumption, production and price developments, as well as the global trade (imports and exports). The forecast exhibits the market prospects through 2030.
Making Data-Driven Decisions to Grow Your Business
A Quick Overview of Market Performance
Understanding the Current State of The Market and Its Prospects
Finding New Products to Diversify Your Business
Choosing the Best Countries to Establish Your Sustainable Supply Chain
Choosing the Best Countries to Boost Your Exports
The Latest Trends and Insights into The Industry
The Largest Import Supplying Countries
The Largest Destinations for Exports
The Largest Producers on The Market and Their Profiles
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