The top exporters of steel to the U. S. in 2017 were Canada, followed by Brazil, South Korea, Mexico and Russia. China did not even make the Top 10.
The Trump administration announced today that it will impose global tariffs on steel and aluminum imports; the proposed levels are 25% on steel imports and 10% on aluminum imports and the rates will apply to all source countries. While no normal declaration was made, the president said he would formally institute these tariffs next week and has promised that they would be in effect “for a long period of time.”
The White House said the tariffs are needed to „protect American-based businesses and workers from cheap foreign steel“ that it claims is unfairly subsidized. A Commerce Department report pointed to several mill closures in the past few years and the loss of several thousand jobs.
“We are going to continue to protect American workers,” White House spokeswoman Sara Sanders said Thursday.
And while Trump’s stated intention behind the tariffs is to protect American jobs and domestic producers while punishing major foreign trade partners who „benefit“ from US gullibility – i.e. China – not only is Trump unlikely to have much success, but the direct macroeconomic effects would be limited.
For one thing, imports of steel and aluminum together account for only about 2% of total goods imports (figure 1). The U. S. imports four times as much steel as it exports, and imports are on the rise again. While the U. S. imports steel from more than 100 countries, three-quarters come from just eight countries (figure 2), according to the International Trade Organization.
Furthermore, while Trump’s trade war is clearly aimed at China, the top exporters to the U. S. in 2017 were Canada, followed by Brazil, South Korea, Mexico and Russia.
