US President Donald Trump intends to impose comprehensive customs duties on steel imports, considering that it will help revive the US cities that produce it. However, the United States is not the only one who takes quick steps to protect its local industries, as the global steel market is heading for a multiple war, and politicians are trying to take measures to reduce the import of this important industrial commodity. For example, South Korea and Vietnam are setting up steel finishes, while the European Union extends protection measures, and factories in Latin America seek more support. Often, the purpose of these movements is China, the dominant product of which exports increased to almost record levels last year. The risk facing steel companies around the world is that Trump’s definitions can exacerbate excess offer, which increases pressure on producers and governments at a time when the market is already suffering from the demand for the metal. “If restrictions are placed before the US market entry, part of this steel will go to at least other markets in the short term, and you will look for more factories for alternative markets,” says Thomas Commodities Ltd, which has been following the industry for more than 15 years. Steel is a cornerstone of the global economy. The gray metal is the cornerstone of the global economy; Most of the major countries strive to have a solid industry, while their rooted political relations have left the field open for waves of protectionism since the nineteenth century. For Trump and others, the metal is still a symbol of industrial power to this day. Trump’s 25% definitions are in effect all steel imports, as well as aluminum, on Wednesday. These new steps reinforce the commercial measures he has taken in his first term, as they cancel exemptions granted to many countries, and expand their scope to include new categories of products. Hours after the mineral definitions came into effect, the European Commission promised to take rapid countermeasures against US imports to Europe, including steel, aluminum and other industrial products. The commission explained that the procedures would be applied to US exports worth $ 26 billion (28.4 billion dollars) to compensate for the economic impact of Trump’s new definitions. It has been the broader commercial barriers since 2015-2016, which threatens to increase the cost of everything, from the automotive industry to the construction of infrastructure, which exacerbates the economic turmoil, and leads to the loss of jobs in steel-based sectors. Unlike the previous steps aimed at specific categories, this tour uses comprehensive measures, affecting larger quantities and important commercial roads. The result that steel producers fear is to redirect the excess excess of China and other countries to markets that are already suffering from pressure. This is specifically concerned about the steel makers in Europe. During the first presidential period of Trump, for every three tons that did not reach the United States, two tets ended in Europe, according to the ‘Eurofer’ organization, representing steel producers in the European Union. “18 million tonnes, which the United States today, with exemptions, will have to find an alternative market. They are looking for an open market represented in the European Union,” Axel Eganert, director of the organization, told reporters in Brussels last week. A bad timing for customs duties is a basic aspect of Trump’s justifications for the imposition of customs duties on China that he sees that the Chinese steel drowns world markets, driving other countries to export more to the United States. He referred to Brazil, Mexico and Argentina as a contribution to parties to this phenomenon. He also blamed other countries because they did not take sufficient measures to address the inflation of the Chinese steel sector. This sector controls most of the global markets, as it has expanded significantly during the first two decades of this century to support urban development and improve the industrial strength of China. However, over the past five years, the demand has partly decreased as a result of the pandemic and the real estate crisis in the country, but the annual production has remained constantly more than a billion tonnes, resulting in an increase in exports. This height has already elicited a wave of reactions from commercial partners who are now afraid to promote more protection. Vietnam and South Korea, the largest Chinese steel importers and the top exporters, also imposed definitions on hot steel pools, a commonly used product that forms a large part of the global commercial flow. Taiwan also launched an investigation to combat dumping, while the commercial authority in India recommended to impose wide definitions on steel imports, according to a local report. “Steel producers in Thailand will face more difficult challenges. We are already going through a difficult period due to the flow of Chinese steel products, even if the government is taking some anti -stamping measures to protect local producers,” said Petroj Maysinsey, head of the cold minerals and steel tube association in Thailand. He added: “There is another concern that the definitions imposed on steel products from other countries can push these countries, not alone, to fired their products in the Thai market. We have already noticed a clear increase in steel products from Vietnam.” At the same time, the European Union assesses its controls on imports following the growing violation of unusual destinations, in collaboration with the decline in demand in Europe. China drowns the steel market according to the ‘Shanghai Minerals Market’, a Chinese research entity, the total size of the Chinese steel affected by the anti -bumping issues, was more than 30 million tonnes by the end of February, which is more than a quarter of Chinese exports last year. Thomas Guterres of “Kalanish” said China had already survived export restrictions in the past by switching in different fixed products or finding new destinations. But he warned that if Beijing could not do this this time, the local industry could get a serious blow. He added: “The risk is that things are largely limited to the point of reaching a turning point.” According to the Institute for Planning and Research for Mineral Industry in China, a government -related body, more than 30 new cases of fighting are against the fight against the fight against the fight against the fight against the fight against the fight against the fight against the fight against the mineral industry. Cru expects in basic commodities that Chinese steel exports will fall by up to 17% this year, partly due to global commercial reactions. All of this increases the pressure on the Chinese steel sector to reduce surplus production. During the annual legislative meetings of the Government in Beijing last week, policymakers promised to reduce the surplus production capacity in the steel sector and other industries, after almost a decade of the last group of the supply side reform. But this time there is less support than government incentives, and the economy has developed to become less dependent on steel compared to the past. China may face the moment of decisions that Trump and his supporters consider a long delay.
The World Wide Steel War is on fire with the latest Trumpdoons duties
