Institute: Recent Trade Cases Could Have Broader Impacts on U.S. Economy
08/17/2015 - The American Institute for International Steel is weighing in with a few thoughts regarding the spate of trade cased filed by U.S. producers, saying the cases come with a few pitfalls that merit consideration.
In a statement, the organization said that one such issue to consider is the potential harm that higher duties on steel imports likely would do to the broader U.S. economy.
"Given our current wobbly economy, when historically so-so 2.4 percent GDP growth is considered robust expansion, and when, according to the Wall Street Journal, wage growth has slowed and personal spending just registered its smallest monthly gain since February, is this really the time to risk raising consumer costs on myriad steel-containing goods?" the organizations said.
"Moreover, the steel supply chain is a diverse, multi-faceted group of employers who pay good wages to many thousands of talented, hard-working Americans. Is this the time when we should undertake even more initiatives, however well-intended, that threaten the jobs of these workers in other parts of the steel supply chain—workers who ship, handle, unload, transport, store, or manufacture steel products using high-quality, specialty imports?" it said.
With the most recent of the cases, a petition for duties on certain hot rolled coil would leave flat products the most protected of steel products in the U.S., according to AMM.
"Three trade cases in two months against the main flat rolled products is pretty much a declaration of war against any import activity," an unidentified trader told AMM.
"Given our current wobbly economy, when historically so-so 2.4 percent GDP growth is considered robust expansion, and when, according to the Wall Street Journal, wage growth has slowed and personal spending just registered its smallest monthly gain since February, is this really the time to risk raising consumer costs on myriad steel-containing goods?" the organizations said.
"Moreover, the steel supply chain is a diverse, multi-faceted group of employers who pay good wages to many thousands of talented, hard-working Americans. Is this the time when we should undertake even more initiatives, however well-intended, that threaten the jobs of these workers in other parts of the steel supply chain—workers who ship, handle, unload, transport, store, or manufacture steel products using high-quality, specialty imports?" it said.
With the most recent of the cases, a petition for duties on certain hot rolled coil would leave flat products the most protected of steel products in the U.S., according to AMM.
"Three trade cases in two months against the main flat rolled products is pretty much a declaration of war against any import activity," an unidentified trader told AMM.
