President Pledges to End Steel Dumping in U.S.
President Donald Trump has pledged to end steel dumping in the United States, possibly via both tariffs and quotas.
Steel is a big problem. Steel- is- I mean they are dumping steel. Not only, China, but others. We’re like a dumping ground, OK? They’re dumping steel and destroying our steel industry, they’ve been doing it for decades and I’m stopping it. It will stop,” he told reporters on Air Force One on July 12, the transcript shows.
When asked about tariffs, the president commented: “There are two ways: quotas and tariffs. Maybe I’ll do both.”
From a speech given by President Trump while visiting Poland before attending the G-20 summit:
We write symphonies. We pursue innovation. We celebrate our ancient heroes…and always seek to explore and discover brand new frontiers. We reward brilliance. We strive for excellence.
…we treasure the rule of law and protect the right to free speech and free expression. We empower woman as pillars of our society and our success…And we debate everything. We challenge everything. We seek to know everything so that we can better know ourselves.”
Implications of Potential Tariffs on Imported Steel:
The Trump administration is nearing a decision on whether to use Section 232 of the Trade Expansion Act of 1962 to levy tariffs on steel imports. The legislation gives the president authority to use national security considerations as a reason to impose restrictions on imports.
China and Other Countries Affected
Although the target was originally China, it appears that broader-based restrictions on steel imports could be enacted. Just how big of an issue are imports of steel, not only from China but from other countries as well, for the United States? Who would feel the brunt of higher steel process that any restrictions would undoubtedly cause?
Imports of Chinese steel shot up from less than $400 million in 2002 to nearly $8 billion in 2008. American imports of Chinese steel crashed when the US economy fell into a deep recession in 2009 and they have never come close to recovering their previous peak.
Decline Deeper than Lower Steel Prices
Part of the weakness in the value of Chinese steel imports in recent years reflects the swoon in steel prices after 2014. Indeed, the value of total American imports of steel tumbled from $43 billion in 2015 to $24 billion last year. But the decline in the value of American imports of Chinese steel goes deeper than simply lower steel prices.
As a share of total American steel imports, China’s share peaked in 2008 at 16%. At that time, China was the most important foreign producer of steel in the American market. However, China’s share of the foreign-produced component of the American steel market has declined significantly this decade, slipping to only 3% last year.
Foreign Steel Producers Have Gained U.S. Market Share
At present there are nine other countries from which the United States currently receives more steel imports. At $4 billion, Canada was by far the most important foreign supplier in the American market with South Korea, Brazil, Mexico and Japan rounding out the top five.
In terms of total market share, foreign produced steel accounted for roughly 20 percent of the American market in the early years of the past decade. As Chinese imports surged, so too did the market share of foreign-produced steel. As noted above, the Chinese share has slipped in recent years as other countries have taken its place as the most important suppliers to the American market.
Last year, about 27 percent of the American market was supplied by foreign producers. In short, foreign producers have gained market share in the American steel market since the turn of the century. That said, more than 70 percent of the US steel market today is supplied by American producers.
Industries Affected by Tariffs
…the following notable industries have high degrees of exposure to steel inputs: fabricated metal products, appliances and components, machinery, transportation equipment and furniture and related products. Prices charged by these industries could also rise and/or profit margins could be squeezed by the imposition of tariffs.
Free vs Fair Trade
A bevy of influential US economists have warned against imposing steel tariffs via a Section 232 finding, according to a letter sent July 12 to President Trump. Any steel tariffs will harm relations with US allies, as officials from Canada, the United Kingdom, the European Union and other regions have already voiced concern.” AMM 7/13/17
This is all fine and good…for THEM, those who are shipping all they can into the US. We are back at the difference between Free trade and Fair trade.
What is fair is not allowing other countries to dump their steel here at below market prices. You don’t want to impose tariffs? Put a limit on tons being shipped in here, product by product.
This country no longer enjoys the position of being every other countries main marketplace. Years upon years of allowing anything and everything to land here It is enough already. Yes, some imports are necessary and we gladly accept them. The marketplaces should be FAIR and fair is easy to determine…In my view.
Americans have flocked to automotive dealers nationwide over the past two years with nearly 35 million vehicles sold-a major boon to the metals industry-but the boom could be over as US automakers begin to see sales decline….Overall US auto sales fell 2.3 percent during the first six months of the year vs the same 2016 period (that is nearly 400,000 vehicles. Nothing to sneeze at).
The dramatic shift into SUV’s and trucks, which transact at a higher level generally, is NOT overcoming the overall weakness in cars…that trend is being played out across the industry.
…Still, even with the downturn, Edmunds.com is still holding its US vehicle sales forecast solid at 17.2 million units, down 2% from 2016, but the fourth best year in US auto sales history. AMM 7/11/17
U.S. Drill Rigs Running Rose Last Week
The number of drill rigs running in the USA rose by 12 last week, led by Alaska and Oklahoma, both up by four. At the same time Canadian drilling dropped by 14 rigs compared with the previous week. AMM
Chicago Fed Survey of Business Conditions (CFSBC) Activity Index Increased
The Chicago Fed Survey of Business Conditions (CFSBC) Activity Index increased to +1 from -8 suggesting that growth in economic activity picked up to a moderate pace in late May and June. Respondents’ outlook for the next six to twelve months improved some and remained optimistic on balance.
Small Business Optimism Fell in June
Small business optimism fell 0.9 points in June as hopes of significant tax and regulatory reform have faded. Most business trends however, remain positive. Wells Fargo Economics
US Raw Steel Production Rose Last Week
US raw steel production rose 0.9 percent last week as mills operated at an ACUR of 74.3 percent. In the corresponding week last year mills operated at an ACUR of 71.3 percent. Thus far this year mills have produced prox 47,000,000 tons compared to the prox 46,000,000 tons produced in the like period last year.
Health Care Delays Senate August Break
Majority Leader Mitch McConnell said Tuesday the Senate would begin its August break two weeks later than scheduled as the chamber labors to pass a health-care bill. Well, isn’t this fine news? I wonder if only the Republicans will stick around or will the liberals stay as well. I think not, they have offered no solutions to the debacle they created 10 years ago and will likely take the month of August off. Drain the swamp…we need to rid ourselves of all of these self-serving sons-of-bitches.
Excerpts from Review & Outlook in the Wall Street Journal (WSJ) Tuesday 7/11/17: Administration Delays
The Trump Presidency is well into its seventh month but the Trump Administration still barely exists. Senate democrats are abusing senate rules to undermine the executive branch and Republicans need to restore normal order.
President Trump got an inexcusably slow start making nominations, but in the past few weeks he’s been catching up to his predecessors…as of June 28 Mr. Trump had nominated 178 appointees but the senate had confirmed only 46.
The White House has understandably begun to make a public issue of the delays and Minority Leader Chuck Schumer says it “has only itself to blame.” But a press release Mr. Schumer sent out Monday made the White House case, showing that the Senate has received 242 nominations but confirmed only 50 through June 30. Democrats are now the problem (as if they weren’t before).
Cloture & Blue Slips
Democratic obstruction against nominees is nearly total, most notably including cloture filings for every nominee-no matter how minor the position. This means a two day waiting period and then another 30 hours of debate. The 30 hour rule means Mr. Trump might not be able to fill all of those 400 positions in four years. The cloture rule also allows the minority to halt other business during the 30 hour debate period, which helps slow the GOP policy and oversight agenda.
Democrats have also refused to return a single “blue slip” to the Judiciary Committee, which has the effect of blocking consideration of judicial nominees from their home states. Senators like Minnesota’s Al Franken and Amy Klobuchar are holding hostage the eminently qualified Minnesota Supreme Court Justice David Stras for the Eighth Circuit Court of Appeals for no reason other than politics.
Minority Leader Chuck Schumer’s troops are even invoking an obscure rule that prohibits committees from doing business more than two hours after the Senate opens for the day. Republicans have had to cancel briefings on national security and Russia electoral interference, as well as scrap markup of two human trafficking bills.
As for the blue slip tradition, it was designed to facilitate advice and consent by allowing Senators to use their home state knowledge about local judges to better inform the White House. But it is a courtesy, not a rule.
Majority Leader Mitch McConnell has also been starting the Senate at different times of the day to get around the Democratic sabotage of committee work. But note Mr. Schumer’s childishness in forcing a game of Senate hide and seek.
Democrats aren’t using cloture to raise the level of debate or highlight unqualified nominees. They are using it-and have said as much-to sabotage a presidency. That isn’t what the Founders intended, and Republicans have every right to stop this abuse of process to let the President form a government.”
So, this is the nature of the Democrat strategy of “resist and obstruct.” They do not care for the country; they do not care for the citizens. They have one reason for existence-the pursuit of power and holding on to it once they have it. What a bunch of losers, thieves, crooks and dishonest self-serving bastards.
DRAIN THE SWAMP…
Infrastructure X (Keystone & Dakota pipelines) Regulation Reform XX 1 in 2 out
Individual Tax Reform Entitlement Reform
Business Tax Reform Education Reform X
Healthcare Reform X rollback begun Veterans Administration Reform X
Rebuild our Military X Trade Reform X
Secure our Borders (The Wall) XX Lead the world from the front XX
Help for the poor Drain the swamp X as we speak
Peace through unmatchable strength Support Israel X
Destroy ISIS X Extreme Vetting XX
Conservative Supreme Court nominees XX American Jobs XX
I will track these campaign promises and will check them off as each is accomplished adding those I have missed as they become apparent. This is quite an agenda and will be difficult to achieve all in one term but I believe the American people are behind him and know these things need to be done. Now, if he can get our legislators to support him instead of fighting him….
“MAKE AMERICA GREAT AGAIN”
Have a great weekend…. God bless America!
Buy American made products whenever you can, it’s good for you, good for your friends and neighbors and good for our country.
If you are hiring…try to hire a veteran…. they are loyal, disciplined, hardworking…and they deserve our support.
By the way, if you wish to comment on my rants or offer any other insights you may have, you are encouraged to email me.
TEDDY ROOSEVELT ON IMMIGRANTS IN AMERICA…1907
In the first place, we should insist that if the immigrant who comes here in good faith becomes an American and assimilates himself to us, he shall be treated on an exact equality with everyone else for it is an outrage to discriminate against any such man because of creed, or birthplace, or origin. But this is predicated upon the person’s becoming in every facet an American and nothing but an American. There can be no divided allegiance here. Any man who says he is an American, but something else also, isn’t an American at all. We have room for but one flag, the American flag…We have room for but one language here and that is the English language…and we have room for but one sole loyalty and that is a loyalty to the American people.”