US Proposed Steel Import Duty May Boomerang

It needs to be seen whether proposed US steel import duty hike turns out to be boomerang for Oval Office? As per experts, in the ensuing trade war among nations after this hike, it could be US industry itself which could be feeling the real pinch with European Union (EU) already mulling 25 percent import duty on US products.

- Kingshuk Banerjee

US President Donald Trump is about to sign the trade order that would set 25 percent hike on imported steel and 10 percent on imported aluminium coming into US market and the impact of the oncoming trade duty hike could already be felt across the global steel industry.

Not only traditional allies like European Union (EU), Japan and South Korea are dismayed over this latest brand of ‘America First’ bandwagon. Reports suggested that steel giants like China and India could also be hit, albeit in rather smaller way.

World bodies like International Monetary Fund (IMF) have warned that the plan would cause damage not only outside the US, but also impact the American economy. According to IMF, the import restrictions announced by the US are likely to cause damage not only outside the US, but also to the US economy itself, including its manufacturing and construction sectors, which are major users of aluminium and steel.

As per media reports, while threats of imposition of counter import duties of US steel and aluminium are also being growing up among the affected nations, the possibility of opening new markets in South East Asia also getting brighter for China, India and Russia.