Burton Mills - US Metals Tariffs Backfire
Burton Mills - Trump's tariffs targeting Chinese metals imports cause prices of domestic steel to rise.
TAIPEI, Taiwan, April 17, 2018 (Newswire.com) - Burton Mills - Throughout United States farm country, where President Trump has a large base of strong supporters, metals tariffs on steel and aluminum imports are increasing the costs of infrastructure and equipment causing many farmers to cancel purchases and delay plans for expansion.
Burton Mills analysts say the effect of increasing steel prices on the US farming sectors shows the inadvertent and unforeseeable consequences of protectionism in a global economy. US farmers fear that this knock will be compounded by additional tariffs on certain crops that China has threatened in retaliation to Trump’s punitive metals tariffs.
Trump’s tariffs on steel and aluminum imports are also affecting producers and retailers of farming equipment. Burton Mills analysts say farming equipment manufacturers are debating whether to transfer the higher cost of materials to farmers who are already feeling the impact of low commodity prices in the midst of a worldwide grain glut.
In the past several weeks, China and the US have threatened each other with import duties to the value of billions of dollars on various products.
Last month, Trump made the decision to impose tariffs on steel and aluminum in an attempt to penalize and restrict imports originating from China. The European Union and six other nations have since been temporarily exempted from the metals tariffs.
Burton Mills analysts say that steel prices in the US have also risen as a result of the metals tariffs imposed by Trump. US steel mills usually adjust their prices only once every twelve months - usually in the first quarter - but so far in 2018, US steel prices have increased four times.
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Source: Burton Mills