The Canadian Steel Producers Association (CSPA) has called for urgent action and dialogue between Ottawa and the new team of US President-elect Donald Trump. This is stated in a statement by the association.
The appeal is related to Trump’s promise to impose 25 percent duties on all goods imported into the country from Canada and Mexico and an additional 10 percent duty on goods from China.
Catherine Cobden, President and CEO of CSPA, notes that the new trade restrictions will harm the interests of Canada and the United States. As noted, the value of steel trade between the parties is about $20 billion a year.
“40% of our steel imports to Canada come from the United States, while 20% of their imports come from Canada. The introduction of tariffs on Canadian steel will have a huge impact on many sectors, such as automotive, energy and construction, which will make everything more expensive for American and Canadian consumers,” Cobden emphasized.
The association reminded that Canada has joined the United States under the last two U.S. administrations to align trade policies to improve supply chain transparency and impose tariffs on Chinese overcapacity.
“Our industry calls on the Canadian government to engage with the new US administration and present a coherent argument that a coordinated North American approach will only strengthen our economic security in the face of serious threats around the world,” the statement said.
It is the aluminum and steel segment that will suffer the most from US President-elect Donald Trump’s promise to impose 25 percent tariffs on imports from Canada and Mexico. This opinion was expressed by Citigroup analysts, Bloomberg reports.
These two trading partners of the United States are the largest suppliers of metals to the American market. Trump’s plan, in particular, could lead to an increase in steel prices by $100-150 per short ton across the United States, according to Citigroup.
As for aluminum prices, the premium in the Midwest compared to the London Metal Exchange could more than double to 50 cents, which could benefit six American smelters. However, analysts warn that it could take years to reconfigure the supply chain. The United States receives about 70% of its aluminum from abroad, of which 60% comes from Canada.
Mexican President Claudia Sheinbaum has suggested that the country could retaliate by imposing its own tariffs. Given that the United States is a net exporter of steel to this market, Citigroup believes that any retaliatory measures will cause more damage to American producers, especially in the area of flat products.
As GMK Center reported earlier, China’s steel industry, which is struggling with overcapacity and weak domestic demand, may face a new blow if US President-elect Donald Trump imposes 60 percent or higher duties on Chinese industrial goods.
Courtesy : https://gmk.center/
