Friday, June 1, 2018

A $62M 'HIT' FOR THE NZL STEEL AND ALUMINUM INDUSTRY

Despite St Jacinda sending a letter to President Trump arguing our strong case for exemption and despite Noel's 'insider' information that 'all's well' the announcement today that Canada, Mexico and the EU will not be exempt from the punitive tariffs being imposed on steel and aluminum imports into the good ole US of A is bad new for NZL.  

 It means that New Zealand's steel and aluminum industry will be taking a $62m 'hit' with the move likely to see a price war in international markets as exporting countries vie with each other to maintain market share. 

Already a number of countries affected by the decision have indicated their intention to take retaliatory action against the US.     A trade-war benefits no-one and what we have now is the beginning of what could be a long and involved trade-war where everyone loses.

I guess NZ First and the Greens will be applauding the President's move as in line with their anti free-trade stance.   I don't.

10 comments:

David said...

Despite St Jacinda sending a letter to President Trump instead of sending a gunboat ...

the announcement today that Canada, Mexico and the EU will not be exempt from the punitive tariffs being imposed on steel and aluminum imports into the good ole US of A is bad new for NZL.

When did NZL become part of the EU or North America?

Anyway, since this is Trump, all Jacinda needs to do is go on Fox and tell them how terrible this is for US Automakers and Trump will change his mind. Again.

The Veteran said...

Gueez David ... can't you draw the dots. They don't, we don't (and neither does Oz).

Anonymous said...

https://www.radionz.co.nz/news/world/358686/us-raises-steel-and-aluminium-tariffs-on-key-allies
https://www.bluescope.com/about-us/bluescope-news/2018/05/bluescope-welcomes-us-steel-exemption/

The Veteran said...

Anon 4.41 ... thank you. Oz yes. NZL No.

The Veteran said...

Anon 4.41 .... twists and turns prevail (what more do you expect from the Trump White House). The 'agreement' to exempt Australia, Brazil and Argentina from the 25% tariff to be levied on steel imports may be subject to those three countries agreeing to quotas.

The Australian Trade Minister said his understanding was that the exemption was permanent and unconditional. An (unnamed) senior White House official said that the three countries had agreed to quotas in return for the exemption.

Who do we believe? What we do know is that NZL has been left out in the cold due in no little measure to St Jacinda's apparent toxic relationship with Trump.

Anonymous said...

St Jacinda's apparent toxic relationship with Trump.

Blame the woman for refusing to bow down to a sexist, pussy grabbing, toe rag.

Were you PM I am sure you would be quite happy to do The John Oliver with Trump.

The Veteran said...

Anon 12.23 ... just pointing out that actions have consequences ... in this case $62m of them ... but what's $62m between friends.

Neither Glenbrook nor Tiwai Point are in the best of economic health. Were one or both to close it would have a major effect on the local economy.

gerald said...

Going to be more than just Kiwi workers affected.
https://www.commerce.gov/sites/commerce.gov/files/the_effect_of_imports_of_steel_on_the_national_security_-_with_redactions_-_20180111.pdf

Anonymous said...

"The steel substrate that Steelscape must import from Australia and other
countries does not threaten the security of at least this part of the United States’
steel industry; it helps the industry survive and prosper.
I would like to point out, in addition, that a large portion of the steel
substrate that Steelscape imports is from BlueScope Steel Ltd. in Australia.
BlueScope Steel Limited is the only exporter of flat-rolled steel from Australia.
The steel substrate that Steelscape imports from Australia – or from any other
source – is not for any defense or national security use. It is simple, flat-rolled
steel that we coat and paint and ship for use in commercial and residential
buildings throughout North America. This kind of steel has no impact on the
United States’ national security requirements."

Nor does Glenbrooks Bluescope plant I suspect.

The Veteran said...

Then there is this little snippet of a couple of weeks back .... https://www.pressreader.com/new-zealand/the-new-zealand-herald/20180316/282458529483261