US steel companies battle over tariff relief - Reuters
As reported by Reuters, US manufacturers and steel companies are battling it out over tariff exemptions from the US Commerce Department.
Key quotes
"The tariff exemptions process is a new front in a battle between U.S. steel and aluminum consumers, fighting to keep prices for those metals down, and U.S. metal producers which argue that foreign rivals have kept prices low with unfair trading practices.
So far, over 22,500 applications for exemptions have landed in Washington and many more arrive each day. Over 4,000 objections have been filed, which is also expected to grow.
Only 98 applications have been processed as of last week, and of those, only 42 were approved, according to the Commerce Department.
Companies are required to fill out a five-page form for each type of product it imports that details everything from the chemical composition of the metal and the volumes they use to its strength and where they are currently buying it overseas.
Those are details nearly every manufacturer considers highly proprietary, since it can be used to assess their cost structure. Competitors can use such insights to tell customers that the other company is likely to face supply shortages or is about to sharply raise prices."
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
