US Section 232 tariffs will not affect Turkish exports, ÇIB says

Turkish steel exports to the United States will not be seriously affected by trade sanctions under Section 232 as long as the 25% tariff is applied equally to all countries, the Turkish Steel Exporters Assn (ÇIB) said on Friday March 2.

US President Donald Trump announced his much-anticipated decision on whether to impose trade sanctions under Section 232 before the deadline of April 11, bowing to pressure from US industrialists. The measure allows him to impose sanctions on imports thought to threaten national security.

The import tariff was not officially signed but Turkish steel exports to the US should continue if the tariffs are applied to the whole world, ÇIB chairman Namik Ekinci said.

Turkey is on the side of fair trade under World Trade Organization (WTO) rules, Ekinci said, and underlined the adverse effects of unfair protectionist actions on global steel trade.

“There should be no import tariff, of course. But if there must be an import tariff, then the right thing to do is to apply it equally to all countries. With the current decision, Turkish exports into the US, along with some other countries, will continue,” he added.

The internal US market will be the worst affected by the president’s decision, Ekinci said.

“All of the local steel prices have increased in the US following the US trade minister’s three import tariff suggestions [that were contained] within the Section 232 report. For example, rebar prices in the US domestic market went up to $850 per tonne, and are expected to exceed $900 per tonne soon,” he explained.

“As president, Trump should have been considering the effects on small industrialists and the general populace instead of only the steel industry. However, he took sides with domestic steel producers to the detriment of his people. This means transferring profits to US steel mills from the steel-consuming industries,” Ekinci said.

“Customers in the steel-consuming sectors - such as automotive, white goods, machinery and construction - will be hurt by rising prices. The US will not create any benefit for its steel industry but will cause much harm in the middle term,” he said.

“The US steel industry currently works unproductively due to outdated technology. Blocking incoming trade will allow local mills to be compete without making the necessary effort,” Ekinci added.

Market participants in Turkey agreed with the ÇIB chairman.

“I think Trump did not want to hurt either US local mills or exporters into the country. This decision will not change much,” a Turkish source said. “We will probably see prices climb in the short term.”

What to read next
Chromite prices rose further in the two weeks to Tuesday May 31 on support from cost pressures and logistical issues in South Africa
UG2/MG chrome ore prices experienced major declines in the week to Tuesday July 12, dropping by $15 per tonne week on week, as the market saw the beginnings of a break in the continuing stalemate of recent weeks
The European charge and high-carbon ferro-chrome benchmark for the third quarter of 2022 has slumped by 16.7% from the previous quarter’s settlement to $1.80 per lb
Executives at major flat-rolled steel producers in the United States discussed three common themes during their companies’ earnings calls for the second quarter of 2022, sharing views on a potential recession, affects from recent government policy changes and trends in steel raw materials
Following a consultation period and market feedback, Fastmarkets will switch its Houston ferrous scrap price series to a consumer buying assessment on January 1, 2023, from its current methodology as a dealer selling assessment.
Austrian aluminium producer AMAG and German automotive manufacturer Audi have developed a recycled aluminium material for vehicle wheels to be put into series production, it was announced on Wednesday, August 3.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.