Steel Prices Increasing Resulted in the Disappearance of 75,000 Jobs
Steel prices have increased by 160%, 75,000 jobs have disappeared, and the United States has successively demanded the abolition of 232 tariff measures.
According to Yonhap News Agency’s report on March 29, the Tariff Reform Coalition recently issued a statement, which states that the imposed tariff measures by former US President Trump are “inefficient” and “self-destructive”, they should abolish those measures. The Tariff Reform Coalition includes 37 trade organizations that represent different industries, including automobiles, agriculture, and metals, led by the National Council for Foreign Trade (NFTC). The coalition criticized the Trump administration’s tariff measures under Article 232 of the Trade Expansion Act, which has made the US economy struggling because of the new crown pneumonia epidemic.
Steel prices is keeping rising
Since August last year, domestic steel prices in the United States have risen 160%, and domestic steel prices in the United States are currently 68% higher than international market prices. The Federal Reserve research report shows that rising steel prices have burdened American companies, and the “232 measures” of steel caused the disappearance of approximately 75,000 jobs in the United States. The alliance emphasized that the Biden government should abolish the “232 measures” for steel and aluminum, in accordance with the WTO agreement, deal with global overcapacity through anti-dumping and countervailing measures. Prior to this, the Union of Metal Manufacturers and Users of the United States (CAMMU) also wrote to Secretary of Commerce Raymondo, urging the cancellation of “Measure 232.”
According to the report, the revision and revocation of “Measures 232” are the main demands of South Korean economic circles. The Korea Trade Association and the National Federation of Economic Persons have repeatedly asked the US to cancel this measure. During the Trump administration, although they exemplted the 25% tarifffs of South Korea, it is facing 70% steel export quota restrictions. People in the Korean steel industry said that as the world economy recovers and steel demand increases, quotas are burdening US steel importers. The Biden government should fully consider the opinions of the domestic industry and relax or abolish quota measures.