US TRADE WAR
Local steel and aluminium firms yet to feel the pinch of Trump’s tariffs
However, there are signs local producers are already trying to cut costs in anticipation of tougher trading conditions
The financial costs of US steel and aluminium tariffs on local producers will only become clearer in the coming months as existing export contracts begin to expire, Steel and Engineering Industries Federation of SA (Seifsa) chief economist Michael Ade said on Thursday. One month after the US imposed these tariffs, local producers are not yet seeing a fall in exports. Confidence has sharply dropped, however, and there are signs they are already trying to cut costs in anticipation of tougher trading conditions. The sector is still facing a number of unanswered questions amid deepening trade conflict and secondary effects such as dumping of products due to a supply glut in some countries Global markets and some JSE-listed shares in particular have been battered by US President Donald Trump’s electoral promise to reduce the US budget deficit. This had begun with the June 1 2018 imposition of a 25% tariff on steel imports and 10% on aluminium, which Seifsa estimates will cost the steel s...
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