Connect with us

Economy

Trump vs. China on Steel Dumping: One Clear Winner

Published

on

Since his presidential campaign, President Trump has harped on cutting the national deficit and increasing infrastructure spending to improve the country’s roadways and systems. That all relies on steel. And the steel industry as a whole has struggled mightily. After the election, the steel sector rose by 40 percent. But that didn’t last. One big culprit? China. Now, Trump is again taking a look at protecting the struggling steel industry against shady trade practices by U.S. international trade partners; specifically China. Trump announced that he’s stopping illegal steel dumping by China through tariffs and quotas. Can the plan succeed? Or will trump end up pricing out U.S. exports?

Will Trump's Plan on Stopping Steel Dumping in China Succeed?

The Trump administration believes China, our overseas trade partner, is guilty of a practice called “dumping” . Dumping is a term that refers to exporting a product at below the typical market price to undercut other countries. Trump believes that China is guilty of this when it comes to steel, and he’s right.

Will Trump's Plan on Stopping Steel Dumping in China Succeed? | Trump vs. China on Steel Dumping: One Clear Winner

This isn’t the first time China has been accused of unethical practices. In November, U.S. steelmakers accused Chinese steel companies of shipping steel through Vietnam to secure lower tariff costs.

The U.S. imports a third of the steel it uses. Chinese steel makes up 3 percent of that steel. However, if China continues to underprice domestic steel, then that number could grow, which would lower the cost of steel overall, hurting the U.S. manufacturing industry as a whole.

Will Trump's Plan on Stopping Steel Dumping in China Succeed? | Trump vs. China on Steel Dumping: One Clear Winner

On Thursday, Trump announced to reporters on Air Force One that he’ll fight China’s steel dumping through tariffs and quotas. Doing so could result in a trade war. But Trump doesn’t seem concerned about that.

Watch the video from Wochit News about Chinese Steel Dumping:

If — or rather, when — Trump puts quotas and tariffs into place against Chinese steel, U.S. steelmakers such as United States Steel Corp. (X), AK Steel Holding Corp. (AKS), and Nucor Corp. (NUE) all of which are up on the news, should continue to rise.

Apple will open its first data center in China. Find out more here.

Follow us on Facebook and Twitter for more news updates!


The statements, views, and opinions of any article, contribution, editorial, or advertisement in this publication are not necessarily those of The Capitalist or its editorial staff, and are not considered an endorsement, sponsorship, or recommendation of any referenced product, service, issuer, or groups of issuers.

This publication provides general information about certain subjects, and should not be construed or taken as advice (legal, financial, investment, tax, or otherwise). Do not construe or take any information in this publication as a solicitation, offer, opinion, or recommendation to buy or sell any securities, bonds, or other financial instruments or to provide any legal, financial, investment, tax, or other advice or service about the suitability or profitability of any financial instruments or investments.

The Capitalist disclaims any liability for the accuracy of or your reliance on any statements, views, opinions, or information in this publication.

 

3 Comments

3 Comments

  1. Pingback: Amazon's Latest Move has Blue Apron Trembling | The Capitalist

  2. Pingback: Robots, Not Jobs, are Being Created Mr. President

  3. Pingback: Shell CEO’s Oil Prediction Emphasizes Value of Clean Tech

Leave a Reply

Your email address will not be published. Required fields are marked *

Continue Reading

Copyright © 2023 The Capitalist. his copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.

Is THE newsletter for…

INVESTORS TRADERS OWNERS

Stay up-to-date with the latest kick-ass interviews, podcasts, and more as we cover a wide range of topics, in the world of finance and technology. Don't miss out on our exclusive content featuring expert opinions and market insights delivered to your inbox 100% FREE!