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US tariff war a fight where everyone loses

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President Donald Trump -- WTO Director-General Roberto Azevedo

 

Last week, President Donald Trump announced tariffs on the two most important metals in modern society – aluminum and steel. He set a 25% tariff on imported steel and 10% on imported aluminum.

World Trade Organization (WTO) Director-General Roberto Azevedo said Brazil is negotiating a collective action with countries affected by the U.S. steel tariff before appealing to the WTO, Poder360 reported March 12.

Azevedo said Brazil would also be open to negotiations with the United States regarding the new 25 percent tariff on steel entering the United States. U.S. President Donald Trump’s steel and aluminum tariffs will go into effect March 23 and have triggered a flurry of global activity as countries prepare their responses to the tariffs.

Donald Trump’s aggressive new steel tariffs could raise the levelised cost of energy (LCOE) for a new wind project in the US by 2-3% on average, according to Make Consulting.

Steel production in the United States is just over 80 million tons a year, down from our peak of over 100 million about ten years ago. Domestic aluminum production has dropped to about a third, with three-quarters of our aluminum smelters closing since the peak.

During this time, foreign producers have increased production dramatically, doubling since 2000. Global steel production is now at an historic high of 1.6 billion tons a year. This has deflated prices in the United States, lost us thousands of jobs, and increased American imports. We now import about four times as much steel as we produce.