According to the latest data from the Commerce International Trade Administration of United States Brazil, South Korea and Mexico are the next biggest exporter’s contributors to the United States.
Kathleen Wynne, the premier of Ontario, the most populated province in Canada, said on Thursday (1st March, 2018) that “Any tariff measures that include steel or aluminum from Ontario could have serious negative impacts on workers and businesses on both sides of the border”.
In Europe, Germany accounted for about 4 percent of United States steel imports previous year, followed by the Netherlands, with 2 percent; and Italy, with 1.4 percent, according to United States data. Britain accounted for about 1 percent of steel imports last year, and France had not more then 1 percent.
Seth Carpenter, a UBS economist, said there was a potential risk to European steel production, as some of the current steel imports to the United States could be directed to Europe.
“The E.U. is the market with least over-capacities and still comparably open for steel volumes, in our view, Mr. Carpenter said in a research note on Friday. “The consequences for the E.U. steel mills could range from lower margins to protective measures fueling steel inflation.”
The British steel maker Tata Steel also saw its shares decreases 4 percent in London on Friday, while the German steel maker ThyssenKrupp slipped 3 percent. While the South Korean steel maker Posco was down 3.6 percent.
“Up until now, most of the market behavior over the past 12 to 15 months has been a reaction to macroeconomic environment, the big sort of tax policy changes,” Mr. Lawson said. “The creeping protectionist that we are sort of seeing in the announcements around Canada lumber, solar panels, washing machines, the Section 232 investigation that proceeded this announcement, the intellectual property investigation around China — these types of things don’t really appear to have affected markets up until now. “