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US Steel suppliers have just over a month to decide how to react before new prices take effect
João da Silva
Journalist
A decision by US President Donald Trump to place a 25% rate on all steel and aluminum imports let some of the main American business partners rushed to conclude an agreement.
The United States is an important importer of steel, important nearly a quarter of the steel it uses, according to data from the American Iron and Steel Institute, which adds that its dependence on Aluminum is even greater.
Its neighbors Canada and Mexico, as well as certain allies in Asia, are among its main suppliers.
Trump said his last prices will take effect on March 12 “without exception or exemptions”.
With just over a month before the fact before the tax launched, how some countries replied:
Canada
As one of the largest suppliers of the two raw materials in the United States, Canada has a lot to lose.
“Canada has additional irritation reasons because they are the largest supplier of steel and one of the largest aluminum suppliers in the United States,” said Deborah Elms, a commercial expert in the Hinrich Foundation.
Canadian Minister of Industry François-Philippe Champagne criticized the decision, the appellant “totally unjustified”.
In an article on X, he said that Canadian Steel was used in the main American industries, including defense, shipbuilding and energy, adding that it made “more competitive and secure North America”.
He added that Canada “would defend our industries as we have always done and always” and warned that “Canada’s response will be clear and calibrated”.
Australia
Although Trump previously declared that he would not consider any exceptions – it seems that this could put this rule aside for Australia.
Australian Prime Minister Anthony Albanese said he had spoken on the phone with Trump and that the American chief was considering an exemption.
A Albanian calling a “very beautiful man”, Trump had previously explained that the United States runs a trade surplus with Australia.
“The reason is that they buy a lot of planes. They are rather far away and they need a lot of planes,” said Trump. “We actually have a surplus, this is one of the only countries we do.”
But despite being the world’s largest exporter of iron ore – a steel key material – Steel exports from Australia are not as important.
According to Albanian, Australian Steel represents around 1% of American imports, although its steel is used by an American military naval manufacturer.
United Kingdom and Europe
There was no official response from the British government to the last American rates, but the Trade Body Uk Steel declared in a statement that the prices would bring a “devastating blow” to their industry.
“The United States is our second largest export market after the EU. At a time to shrink demand and high costs, the increase in protectionism worldwide, especially in the United States, will suffocate our exports and damage more than 400 million pounds Sterling ($ 494 million) The sector’s contribution to the balance of the United Kingdom’s exchanges, “said Gareth Stace, CEO of UK Steel, in a statement.
“It is deeply disappointing that President Trump sees the need to target UK Steel, taking into account our relatively low production volumes compared to the major steel nations,” he said, adding that there was a Danger that other countries can “redirect” steel to the British market to avoid American prices.
Meanwhile, the European Commission strongly reacted to the prospect of more prices, claiming that it “will protect the interests of European companies, workers and consumers against unjustified measures”.
According to the Eurometal commercial group, the United States was the second largest market for EU iron and steel exports.
Trump imposed prices both in the United Kingdom and the EU during his first mandate, but these restrictions were later softened by the Biden administration.
India
India steel secretary Sandeep Poundrink said Trump’s prices would not have much impact – stressing the fact that India is only exporting a small fraction of his Steel in the United States.
“” How much steel do we really export to the United States? “Said Poundrik at an industry event, according to a PTI report.
“We produced 145 million tonnes of steel last year, of which 95,000 tonnes were exported to the United States. So how is it important if 145 million tonnes, you are not able to Export 95,000 tonnes. ”
But not everyone shares this feeling.
The head of the Indian Steel Association (ISA), Naveen Jindal, said that it was “deeply concerned” that the American restrictions could lead steel manufacturers to throw their steel on the Indian market at lower prices.
These prices should “reduce steel exports to the United States by 85%, creating a massive surplus which will probably flood India, which is one of the few major markets without commercial restrictions,” said Naveen Jindal.
South Korea
South Korea is a major steel exporter in the United States, according to the American Iron and Steel Institute.
Its steel is used by South Korean companies such as Hyundai, Kia, Samsung and LG which have factories in the United States and Mexico.
Tuesday, its Minister of Commerce Cheong In-kyo said that South Korea “would actively examine” if there was a place in negotiations with the United States-one day after the Ministry of Industry held a meeting urgently with Steelmakers.
In 2018, when Trump also imposed a 25% rate on all steel imports, Seoul obtained a derogation in exchange for an annual import quota.
What to follow?
It is not known that transactions could really be reduced or the derogations granted in next month, but Eswar Prasad, an expert in international commercial policy at Cornell University, said in the long term, American trade partners can seek diversifying The United States by selling its products elsewhere.
But he also says that “Trump’s drastic actions have put the rest of the world on the back” due to the strength of the American economy compared to most of its business partners.
Another analyst says that if the United States business partners can request short-term appeasement, they could still decide to retaliate in the long term.
“While openings can be sent to work with the Trump team to avoid prices, our partners can conclude that prices arrive so quickly and furious, negotiations are not a sustainable option,” said Wendy Cutler, Vice- President of the Asia Society Policy Institute.
