Asia To Be Minimally Affected By US Steel And Aluminium Tariffs
Washington, US: US President Donald Trump has announced tariffs on imported steel at 25 percent and aluminium imports at 10 percent that go into effect after March 23, 2018.
Asia is expected to be minimally affected when compared to the rest of America’s trading partners, according to business and financial services company Moody’s Investors Service. The region produces more than two-thirds of the world’s steel.
“The impact of the tariff would be manageable for the Asian steel sector and Moody’s-rated steelmakers in the region, because exports to the US account for relatively small portions of their total steel production,” said Sean Hwang, an analyst at Moody’s.
The US government wants to reduce the US trade deficit and to boost aluminium production—now below 50 percent of capacity—to above 80 percent and to increase steel production to a similar level from about 70 percent of capacity utilisation today.
US manufacturers that are concerned about the recently announced steel and aluminium tariffs may yet be able to take action to minimise the impact these trade actions could have on their bottom line. They can seek exemptions if the material they want to import cannot be sourced at a reasonable cost domestically, or if there is a national security interest for the exemption.
Businesses in the US that import steel and aluminium, from automakers to canning companies, could take some immediate steps to ensure the best outcome such as undertaking a systematic supply-chain review and to also source US-manufactured materials instead of imported metals.
