Friday, February 26, 2010

Another Trade Re-write: U.S. Consumers, American Companies Slammed With New Steel Taxes

Business Insider: "U.S. Steel Unions Score American Consumers and Steel-Using Companies Dealt Yet Another Huge Victory Loss As China They Are Slammed With New Steel Tariffs  Taxes"

One has to envy pity the insignificant amount of pull U.S. steel workers consumers and steel-using companies have. The majority of U.S.-China trade agitation is caused by imposes signifcant costs on this one relatively tiny huge part of the U.S. economy.

From China Daily:

"The United States government on Wednesday imposed preliminary duties taxes ranging from 11 to 13 percent on its own companies (and their employees, customers and shareholders) that purchase steel pipe from China to offset government subsidies, the Commerce Department said.

The decision puts further strain on US-China trade relations, already tested by disputes over other US trade actions and China's currency policy.

It is a victory for US Steel Corp and the United Steelworkers union, which filed a petition in October asking for protection against the more efficiently produced and lower-priced Chinese imports, but a huge loss for American companies that purchase steel and U.S. consumers who purchase products made from steel." 

See previous trade re-write examples here and here.

14 Comments:

At 2/26/2010 4:01 PM, Anonymous Anonymous said...

I think you are crazy. Who supports US Steel Corp anymore??? Now we have tariffs on steel when we used to the steel capital of world? How embarrassing and ironic...

 
At 2/26/2010 4:30 PM, Blogger Evil Red Scandi said...

Forgot to put "FTFY" at the bottom :-)

 
At 2/26/2010 5:04 PM, Anonymous Sonish said...

China is the largest IMPORTER of US recycled steel. I'm guessing that they might even buy more recycled steel than the US.

No one ever seems to acknowledge that.

 
At 2/26/2010 7:04 PM, Anonymous Anonymous said...

Now we have tariffs on steel when we used to the steel capital of world? How embarrassing and ironic...

Talk to the Steel Workers Union.

 
At 2/26/2010 8:23 PM, Anonymous gettingrational said...

China Imposes Steel Duties on Russia and U.S.

 
At 2/26/2010 8:25 PM, Anonymous gettingrational said...

China Imposes Steel Duties on Russia and U.S.

 
At 2/26/2010 10:18 PM, Blogger Michael said...

This is going to bite us in the end. China is reducing coke and rare earth elements exports. They could put us in the position where if we want steel or green tech (windmills or solar), the US is gone to have to buy it from them.

 
At 2/27/2010 7:50 AM, Anonymous Lyle said...

To point out that at least at one time 1870-1910 protective tariffs on iron and steel appear to have been a good thing. It allowed the US to develop a steel industry rather than depending upon Britain for steel. Of course that was also the time the US moved from being a bunch of little disconnected markets to one common market, as the railroads made it possible to ship goods anywhere in the country. (The biggest duty protected steel rails).
If you regard keeping at least some steel capacity in the US as a defense measure (which it would have been 50 years ago, then the tariffs are a defense measure)

 
At 2/27/2010 9:40 AM, Blogger Michael said...

Just one problem. Making coke is so very not green. It involves backing coal for 36 hours at high temperatures. I don't know if the US has banned the practice, but the US is whining to the WTO that China isn't exporting enough of the stuff to us.

 
At 2/27/2010 1:11 PM, Blogger sethstorm said...

This comment has been removed by the author.

 
At 2/27/2010 1:14 PM, Blogger sethstorm said...


It is a victory for US Steel Corp and the United Steelworkers union, which filed a petition in October asking for protection against the more efficiently produced and lower-priced Chinese imports

For very strange and low-quality redefinitions of "efficient".


The decision puts further strain on US-China trade relations, already tested by disputes over other US trade actions and China's currency policy.

Now just throw on the tariff that revalues the yuan at a very unfavorable rate. Then just declare what already has been proven - that China is a currency and junk-grade goods dumper.

Any time China can be made angry, I chalk that as a victory for the US.

It is not so much a tax on oneself as it is a disincentive to procure Chinese goods. To prevent an endrun, extend it to any country that attempts to take over.

 
At 2/27/2010 2:38 PM, Blogger Ian said...

Pogo was right, "we have seen the enemy, and it is us."

Several years ago, I was in the position of having around 25 tons of clean uncontaminated cast iron scrap on hand. When attempting to sell it to local foundries, I found the scrap unsellable.

The major customer for cast iron products was local governments, or those doing work for local governments. The foundries could not sell to these customers without a Certificate of Quality for the raw materials. All the cast used came from China! Our clean cast ended up going for mixed, (much less) price, and was shipped to China. Undoubtedly, this was used internally, and we got the crap sent back with a 'Certificate'.

 
At 2/27/2010 7:05 PM, Blogger Michael said...

sethstorm,

We can't make the Chinese mad. They hold the future of western energy. Cap and Trade won't work unless the Chinese are at the table getting a cut.

 
At 2/27/2010 11:04 PM, Blogger sethstorm said...


We can't make the Chinese mad. They hold the future of western energy.

Only if we allow them to do so.

I do not support Cap and Trade, if that's what you were thinking. In my book, it is as much a fraud as offshore outsourcing is to the US citizen. That is, there's nothing honest about it.

 

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