Madonna - "Into the Groove" (For those born after 1985)
My comment - Desperately Seeking Inflation - Over the last several months there have been Reuters articles about a Trump administration probe into steel imports. The question is, "does Trump follow up on his campaign promises and impose restrictions on imports for reasons of national security."
I ask this question because I got an email today from a friend who uses a lot of steel in his privately owned oil industry related business. He makes regular large purchases of steel and watches the steel market VERY CLOSELY since the daily spot price of steel directly affects his bottom line. I had recently sent him a chart of the SLX VanEck Vectors Steel ETF.
The following is his response to me. He knows far more than I do about commodities and especially about steel.
"When the DOC reports back to the president on the 15th, it may be likely to see him enforce Section 232, which will light steel prices on fire and drive aluminum up too!"
Trump security plan boosts case for steel, aluminum curbs: official Business News December 19, 2017
WASHINGTON (Reuters) - U.S. President Donald Trump’s new security strategy bolsters the case for trade actions to protect U.S. economic interests on national security grounds, including possible import tariffs on steel and aluminum, a senior Trump administration official said on Tuesday.
Trump administration probe into steel imports nearly done -US official Market News June 16, 2017
POSSIBLE TARIFFS There has been concern that Chinese producers have routed steel and aluminum through countries such as Vietnam to avoid U.S. duties and scrutiny.
Commerce Secretary Wilbur Ross, a billionaire businessman who made part of his fortune investing in steel, coal and autos, said the investigation had been spurred by the fact that Chinese exports of steel made up 26 percent of the U.S. market for the metal.
China is the largest national steel producer and makes far more of the metal than it consumes. It sells excess output overseas, often undercutting the prices offered by producers in the importing nations, according to U.S. steel companies and officials.
Ross has said that if the Commerce inquiry finds the U.S. steel industry has been hurt by excessive steel imports, he would recommend retaliatory measures that could include tariffs.
Section 232 of the Trade Expansion Act of 1962 (19 U.S.C. §1862) authorizes the Secretary of Commerce to conduct comprehensive investigations to determine the effects of imports of any article on the national security of the United States.Apr 20, 2017
Section 232 Investigation on the Effect of Imports of Steel on U.S. ... https://www.commerce.gov/.../section-232-investigation-effect-imports-steel-us-nation... Apr 20, 2017 - After a thorough investigation, if any national security threats from steel imports are identified, Secretary Ross will provide a report that includes recommendations for next steps. Under Section 232 of the Trade Expansion Act, the President has broad power to adjust imports — including through the use of ... ********************************* Edge83, I will not be able to respond to your question until free pm time 4-5 pm Friday.
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