Stainless steel importers in the United States do not believe that the August 1 deadline for international trade negotiations will end market uncertainty or ease their supply problems.
Back in May, as a result of preliminary trade negotiations with the United Kingdom, a preliminary Section 232 tariff of 25% was introduced. The price of steel imports from this country is half the 50% rate announced on June 4. However, it remains unclear whether this indicator will remain at the same level. In addition, few buyers of stainless steel believe that trade agreements reached with other countries will include a reduction in the tariff on steel.
- This article first appeared in the July edition of the MEPs on International Stainless Steel Comment. The publication provides information on market conditions, stainless steel prices, indices and forecasts in key markets in Europe, Asia and North America. Visit the website mepsinternational.com or contact members of the European Parliament for detailed information on how to sign up.
In addition to the framework trade deal agreed with the UK, the White House announced new trade agreements with the EU, Vietnam, Indonesia, the Philippines and Japan. They provide for 15%, 20%, 19%, 19% and 15% "retaliatory" duties on imported goods, with the exception of steel and aluminum. Following recent negotiations with Japan, Japanese Prime Minister Shigeru Ishiba confirmed that the 50% U.
S. import tariff on steel will remain in effect. The EU's 50% tariff on steel will also remain in force, despite the mention of a possible quota-based agreement.
Moreover, the agreed tariffs – above the 10% base rate applied during trade negotiations – are likely to lead to a reduction in imports of various goods to the United States, including steel products.
Long-term effects of tariff increases
Reliable stockbrokers in the United States say that increased trade barriers and market uncertainty caused by President Trump's tariffs could have long-term consequences.
A study by MEPs showed that the recent price increases at American enterprises, which were triggered by expectations of price support through tariff increases, were only partially accepted by buyers. Market participants say that stockbrokers and end users have moved away from the market and are in a "wait and see" mode. In conditions of weak demand, few are willing to pay the increased prices offered by domestic manufacturers.
Despite tariffs and low market demand, many U.
S. buyers continue to evaluate the feasibility of imports. Buyers negotiate with foreign suppliers themselves.,
