A move by US President Donald Trump to slap a 25 percent tariff on all steel imports is expected to place Taiwan-made steel, which already has a 25 percent tariff, on an equal footing, the Taiwan Steel & Iron Industries Association said yesterday.
Speaking with CNA, association chairman Hwang Chien-chih (黃建智) said such an equal footing is expected to boost Taiwan’s competitive edge against other countries in the US market, describing the tariffs as "positive" for Taiwanese steel exporters.
On Monday, Trump signed two executive orders imposing the new metal tariffs on imported steel and aluminum with no exceptions and exemptions, effective next month.
Photo courtesy of China Steel Corp
According to foreign media reports, Taiwan ranked the eighth largest steel exporter to the US market last year, selling 1.01 million tonnes of steel products, behind Canada (6.56 million tonnes), Brazil (4.50 million tonnes) and Mexico (3.52 million tonnes).
Hwang, also chairman of China Steel Corp (中鋼), the largest steel maker in Taiwan, said the new executive orders, which will take away an exemption status from Canada, Mexico, Japan and the European Union, are expected to help Taiwan sell more steel products to the US.
The tariffs are also expected to push up steel prices in the US market, benefiting Taiwanese exporters, he said.
Prices of hot rolled steel products have risen to US$837 per tonne from US$767 since Trump took office on Jan. 20, and the prices could hit US$1,000 per tonne shortly due to the tariffs, he added.
Meanwhile, an executive from Yieh Phui Enterprise Co (燁輝), another major steel supplier in Taiwan, said the 25 percent tariffs mainly targeted the leading exporters such as Canada and Mexico, which enjoyed a large trade surplus with the US.
Once the new tariffs become effective, the executive said steel imports to the US market are expected to move lower, which could push up product prices there and allow Yieh Phui to improve its profitability. Currently, the US market accounts for half of the company’s total exports, he said
Chung Hung Steel Corp (中鴻), another Taiwanese steel maker, said the new tariffs will change the current unfair competition in the US market as many countries enjoy an exemption, a positive trend to Taiwan.
However, Hwang said Trump’s tariffs on steel could cut both ways for Taiwanese exporters.
He said these countries which will be taking away tariff exemption are likely to ship their products to other markets such as Asia or Europe at lower prices to make up the losses in sales in the US, which could place Taiwan under new competition.
He added as the new tariffs will not go into effect until March, Trump could change his mind before that, urging Taiwanese exporters to keep a close eye on the situation.
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