Help Desk -
9958816305, 9810335381

Trump Trade War - Replacing tariffs with quotas is worse for US energy

Steel News - Published on Mon, 17 Dec 2018

Image Source: Reliance Foundry
Mr Merrill Matthews wrote in The Hill that the Trump administration may soon switch tactics in its trade war. Administration officials are considering lifting their highly unpopular 25% tariff on steel imported from Mexico and Canada and may impose quotas instead that would restrict how much steel US firms can buy from Mexico and Canada. Quotas may seem like a subtler way to impede trade, but in reality they could be even more damaging.

The tariffs have enraged our Mexican and Canadian allies and imposed higher steel costs on US businesses and consumers. US energy companies, in particular, have suffered since many of the specialized steel parts used in oil and gas pipelines must be imported from abroad.

North American energy trade depends primarily on pipelines to swiftly and safely transport huge amounts of fuel across the country and across borders. And those pipelines depend on steel imports, which the administration began taxing last spring in the hope that higher-cost imports would force American firms to buy domestic steel. But for the energy industry, buying domestic often isn’t an option. American steel manufacturers don’t produce many of the parts required for energy infrastructure projects. Only three steel mills make 30-inch thick pipes, and the thickest, highest grade pipes aren’t available anywhere in the United States. That’s why US energy firms import 77% of the steel they use for pipelines.

Source :

Posted By : Sanju Moirangthem on Mon, 17 Dec 2018
Related News from Steel segment