|Re: U.S. Feels the Pain of Steel Tariffs As Prices Rise, Supply Is Reduced|
By Neil King Jr. and Robert Guy Matthews
Staff Reporters of The Wall Street Journal
May 31, 2002
The dispute over steel tariffs is just one more clue pointing to the deterioration of Transatlantic trade --and the US's shift to Transpacific economics... After all, China didn't complain about the US's arbitrary move to tax steel imports... Pretty odd, isn't it? I mean, considering the fact that China is the world's TOP steel producer. Actually, China is the world's #1 steel producer AND consumer, since its booming construction sector is a major outlet for Chinese steel (just think of the mammoth project to build the Three Gorges Dam on the the Yang-Tze river).
In all, the US government's choice to target steel imports will further damage the US-EU trade relationship while sparing Asia (China will likely take the slack off Japanese and other Asian steel-producers before Europe's...)
Chinese steel industry officials said they were unfazed by the tariffs because their imports to the United States were relatively small -- about 700,000 tonnes [*] of products worth more than $300 million last year.
But analysts said Chinese steel firms could face more competition at home if foreign rivals try to ship more products to China now that they face higher U.S. duties.
[*] Compare that to the 354,000 tons of steel necessary to build the Three Gorges Dam alone: