Are These Inventions From Canada Or Mexico?
The exception was made only for Canada and MexiciShis closed from imports of steel and aluminumi became the result of investigations under Section 232, the norms in the US legislation to introduce any import restrictions if it represents the threat of national security of the country. Donald Trump March 1 Announced these duties, but initially the Public Position of the US President and the White House officials assumed the introduction of long-term duties without any exceptions.
At the same time, the US Department of Commerce revealed other options proposed by Mr. Trump. According to steel, the first option was assumed besides the specified duty, the quotation of deliveries of 63% of imports in 2017, the second option – a fee of 53% for 12 countries (including Russia, China, South Korea and Brazil) and a quota in 100% of the supply volumes in USA for 2017 for all other countries. Aluminum was offered to introduce either a total fee of 7.7% for all countries, or a duty of 23.6% for a number of countries, including Russia and China, or a quotation of 86.7% of importation into the country in 2017.
As the EU is preparing to answer new American duties
After a squall of indignation by the governments of other countries, promises of response and threats of proceedings in court under the WTO authorities softened the rhetoric. If in the first days of March, Donald Trump declared that he did not see anything wrong with the trade war, then this week was openly discussed about possible exceptions for Canada and Mexico when revising the agreement on Nafta. Immediately during the day March 8, an encouraging meeting with members of the Cabinet, US President wrote on Twitter: “We must protect and develop our steel and aluminum industry, but at the same time show significant flexibility and cooperation with real friends who honestly come with us and in trade, and military relations “.
And at the very meeting, Mr. Trump said that he would retain the right to change the amount of duties, as well as the list of countries to which they would apply.
At the same time, the United States strongly depend on import imports (takes about 30% of consumption, the main supplier – the European Union) and aluminum (about 80% of consumption, main supplier – Canada). In January-September 2017, the United States imported 26.9 million tons of $ 21.9 billion (an increase of 20% in physical terms and by 34% in monetary), Russia accounts for 9% of these volumes, the materials of the US Department of Commerce. US aluminum imports in 2016-2017 amounted to about 5-6 million tons per year (net imports – about 2.5 million tons).
Interlocutors “alongthecoastcottage” among metallurgists were specified that exports of steel from the Russian Federation in the United States in 2017 amounted to about 2.5 million tons (about 9% of the total steel export of Russia). Basically supplies semi-finished products (which is confirmed by the US Department of Montarm): NLMK is 1.3 million tons of slabs, Evraz – 530 thousand. Tons of Slybov from 700 thousand. Tons of total deliveries, about 250 thousand. Ton steel exported to Severstal in the US.
In “RUSAL”, which in 2017 sold 3.95 million tons of aluminum for $ 8.32 billion, noted that directly in the United States sell “just over 10% of the total”. US Power on Primary Aluminum – only 20% of the needs. “The decision of the US President is aimed at raising prices for aluminum so that production in the country has become cost-effective, so that the duties will eventually use consumers, and importers will continue supply, especially in segments with a production deficit in the United States,” the “RUSAL” stressed.
Why Donald Trump went to the global trade conflict
In the Ministry of Industrial Commission of the Russian Federation, they had previously noted that Evraz, NLMK and TMK with assets in the United States could suffer from the introduction of duties from Russian metallurgists. NLMK plants in the United States released 2.16 million tons of rental in 2017 (they sold 2.24 million tons of $ 1.7 billion), the payment of its own steel division was 623 thousand. tons (90% download). Division Evraz North America (plants in the USA and Canada) paid 1.75 million tons of steel, producing 1.85 million tons of products (rental, rails, pipes) for $ 1.77 billion. Under duties can get products of Canadian assets. The American division of TMK IPSCO, which in early February postponed the IPO in New York, in 2017 sold 671 thousand. Ton pipes for $ 994 million.
In Severstal, do not consider the US market priority (2% of sales in 2017) and promised in case of administration of duties “Easy to redirect” supplies. In Evraz, NLMK and TMK did not comment on the situation to the official decision on duties. At the same time, the sources of “alongthecoastcottage” noted that there are specific difficulties: Russian metallurgists who owe assets in the United States, “closely followed the situation”, but fear to act directly or through lobbyists against the background of the investigation on the interventions of the Russian Federation in the election of the President of the United States, sanctions and “Kremlin report “.
Why Russian metallurgists asked to remove import duties on the electrodes
In the uniting largest metallurgists of Russia, the Russian Steel Association on March 7 declared Interfax that although the proposed measures would cause certain damage to the Russian industry, the safety of the strength and competitive advantages of metallurgists will help smooth and minimize the negative effect. At the same time, the members of Russian Steel believe that the precedent itself applying a new type of trade restrictions in the United States “deserves a sharp negative assessment by the enterprises of the global industry and requires joint efforts to counter the growth of protectionism in the United States by all legitimate and affordable means, and, in the first place , within the WTO “.
Russian officials said that they were divided into colleagues around the world and promised to closely monitor the situation, but the specifics did not lead. However, the sources of “alongthecoastcottage” said that the Russian ministries already receive proposals from other countries about joint position and possible actions against the United States.