The Trade War Begins: Chinese Steel Fights Back
Despite warnings of retaliation from Chinese President Xi Jinping, Trump’s tariffs on foreign metal imports went into effect mid-March. A month later, the Chinese steel industry is now revealing plans to fight back, effectively starting the international “trade war” long-prophesied by expert economists.
NBC is reaching out to as many US manufacturers, construction companies and automotive businesses as possible to equip them with all the tools and understanding they’ll need to prepare for the coming trade war with Chinese steel.
How it All Started
A Threat to the US Economy:
President Trump initially encouraged foreign steel tariffs to combat overseas competition. The Chinese steel market was specifically targeted throughout Trump’s push for these tariffs, who have dominated the global steel market for many years.
Low prices due to overproduction has made Chinese steel one of the primary sources of materials used by US construction and manufacturers for many years. As a long time supporter of the American steel industry, Trump’s steel tariffs aim to entice domestic steel purchases with now-lower prices than the competition.
A Threat to US National Security
Both Trump and the US Commerce Department are defending their decision with claims that Chinese steel is threatening US national security. Although little explanation has been given as to why these statements were made, a select few point to China possibly violating Section 232 of the Trade act of 1962 as the source of these claims .
On Thursday, March 29, Trump levied tariffs on over $50 billion Chinese steel imports, due to his recent insistence that China is stealing American technology. With the Trump administration making exceptions to the steel industry
China Fights Back
Trump has been exempting one foreign steel market after another from his steel and aluminum tariffs, including Canada, Mexico, and Australia, and multiple South American countries, making the targeted nature of these tariffs on Chinese steel imports increasingly apparent.
The Chinese Commerce Ministry immediately retaliated against the US yesterday with promises to place heavy tariffs on US steel imports in return. This came as no surprise to economists and politicians nationwide, who have long warned against the consequences of imposing such targeted tariffs on overseas markets.
How to Prepare for the Global Trade War
With US steel exports to China currently valued at $3 billion, Chinese tariffs on US steel imports is expected to hit the US economy hard in the coming months.
NBC is helping construction, manufacturing, and automotive businesses nationwide prepare for the coming trade war with creative business financing strategies.
Read this article to learn how you can prepare for the trade war with the Chinese steel industry: