How Donald Trump’s temper tariffs are a gift for oil cartel Opec
The levy is not even in place yet and already is drawing howls of complaint from some of the very sectors of US industry Trump has vowed to protect
President Donald Trump’s planned 25% import tariff on steel is a gift to oil cartel Opec and Russia. His announcement last week will surely play well in steel towns, as its aim is to protect American producers from "unfair" competition from cheaper foreign suppliers. However, it will inevitably drive up costs for the nation’s oil and gas producers. And that could be bad news for the resurgent shale industry, which has set the US on the road to becoming the world’s top oil producer. Steel used in oil pipelines has to meet rigorous technical specifications to ensure it doesn’t corrode or fracture during a lifetime that may well exceed 30 years — far longer than that of a domestic appliance or a vehicle. But the market is a small one for steel makers, accounting for just 3% of the US total, according to the Association of Oil Pipelines, a trade group that represents the interests of owners and operators. That’s even with the surge in domestic oil production. US steel makers have largel...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.