Tariffs Critical to Ensure U.S. Steel Industry Growth Prospects

SEATTLE (Scrap Monster): The conditions in the U.S. steel industry have improved significantly during recent times, thanks to Trump administration’s trade actions, tax and regulatory reforms. The above have provided much needed relief for the American steel industry, said Thomas J. Gibson – the President and CEO of the Washington, D.C-based the American Iron and Steel Institute (AISI).

Gibson noted that the capacity utilization rates at country’s steel mills have registered notable improvement in recent months to levels not seen in almost a decade. The steel shipments by the country have surged higher by 4.8% in 2018, as compared with the previous year. At the same time, the imports have declined sharply by 37% ever since the introduction of hefty steel tariffs by the Trump administration.

The trade actions have also resulted in the reopening of some of the shuttered facilities and hiring back of laid-off workers. Further, it has also led to fresh investments in new steel production facilities. All these have contributed to creation of new jobs and revival of the country’s economy. In fact, manufacturing section industrial production growth in 2018 hit the highest level since 2012.

Gibson noted that there is still more work to be done. Hence, premature termination of tariffs may lead to steel industry losing its advantage and may again push the sector into troubles. The Section 232 trade action is critical to ensure that steel remains as a vital asset for the country’s national and economic security, he added.