Investing.com – President Trump’s decision to add Canada, Mexico and the European Union to the list of trade partners subject to steel tariffs with have a mixed impact.
Canada and Mexico are among the top 10 suppliers of steel to the U.S., the world’s largest importer. The European Union, however, has only one member in that group, and that’s Germany, which has a relatively small share.
Here is the ranking and market share of key trade partners in 2017, according to the International Trade Administration.
Canada and Mexico, which rank first and fourth, respectively, would be the hardest hit by the 25% tariffs, according to the ITA. It estimates 87% of Canada’s steel exports went to the U.S. in 2016, while 38% of Mexico’s were sent to the U.S.
By contrast, the impact on Germany and China is limited. Germany’s share of imports is just 4% and the U.S. is only its ninth largest market for steel. China, the world’s largest steel producer, accounts for only 2% of U.S. steel imports. The American market ranks 25th as a destination for Chinese steel.
Brazil and South Korea, which rank second and third, respectively, on the steel import list, agreed to quotas limiting imports in exchange for tariff exemptions.
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Source: Investing.com
