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Trump Trade War - Nippon Steel Fears Potential Earnings Damage

Steel News - Published on Wed, 05 Jun 2019

Image Source: SteelGuru
Reuters reported that Nippon Steel Corp said any move by Washington to impose tariffs on Japanese cars and auto parts will hurt its earnings, but expects less of a direct impact from proposed tariffs on US imports from Mexico. Nippon Steel’s EVP Mr Katsuhiro Miyamoto told Reuters “The new tariffs are likely to have little impact on our business as steel which we export to Mexico is processed in our local joint venture and sold to automakers in the country. Although those automakers will be hurt by tariffs, the initial 5% tariff at least may not have a major impact because of the healthy US economy and cost competitiveness of automobiles made in Mexico.”

Nippon Steel’s joint venture in Mexico has an annual production capacity of 420,000 tonnes of galvanized coated steel used in automotive parts

Aiming to curb a surge in illegal immigration, US President Donald Trump said last week he would target all goods coming from Mexico with a 5% tariff from June 10, increasing to 25%, unless Mexico took immediate action. The move spooked global markets worried about a new front in the US trade war.

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Posted By : Sanju Moirangthem on Wed, 05 Jun 2019
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