The steel trade relationship between the USA and China has been contentious, particularly since the Trump administration . Recent developments include:
- Increased Tariffs: The US has doubled tariffs on foreign steel and aluminum imports to 50% . This move is intended to boost the American steel industry .
- China’s Response: China has accused the US of violating trade agreements and has stated it will take measures to defend its interests .
- Limited Direct Impact: While China is the world’s largest steel producer, it sends very little steel to the United States due to existing tariffs .
- US Concerns: The US has expressed concerns that China continues to offload low-priced, excess steel into the United States market, undercutting the competitiveness of the US steel industry .
- Trade War: These steel tariffs are part of a broader trade war initiated by the Trump administration, leading to increased tensions between the two countries .
- Potential Consequences: Experts warn that while tariffs could protect steel manufacturing jobs, they could also hurt employment in industries that use steel . Higher prices on construction projects, cars, and appliances are also expected .
Global steel trade is currently facing several issues, including:
- Overcapacity: China’s steel overcapacity is a major concern, leading to potential dumping and trade disputes . Efforts are being made to address this issue and mitigate trade disputes .
- Trade Disputes: The World Trade Organization (WTO) deals with global trade rules and dispute settlements between nations . The United States has been involved in disputes concerning duties on steel and aluminum products .
- US-EU Arrangements: The US and EU have agreements regarding global steel and aluminum excess capacity and carbon intensity . These arrangements aim to ensure transatlantic trade in steel and aluminum . The EU has prolonged tariff suspensions for US products related to steel .
- Section 232 of the Trade Expansion Act: Duties imposed under Section 232 have been a point of contention. The WTO found that these duties were inconsistent with Article II:1 of the GATT 1994 as they exceeded the bound tariff rates in the United States’ WTO Schedule of Concessions .
- Global Steel Trade Monitor: The Global Steel Trade Monitor provides data on the largest steel importing and exporting countries .
- Sustainable Steel and Aluminum: There are discussions on a global arrangement on sustainable steel and aluminum .
- Carbon Intensity: The arrangements between the US and EU also consider the carbon intensity of steel and aluminum production .
- Anti-dumping and Countervailing Duties: These are measures used to counter unfair trade practices like dumping .
- for more steel trade issue read here , for world news click www.eminentnews.com
