Recently, four industry organizations representing the top steel producers in the United States and the United States Steel Workers Federation urge President-elect Joe Biden to retain the steel tariffs imposed by President Trump in 2018, saying they are “critical to the viability of the domestic steel industry” important".
The above-mentioned union, together with the American Iron and Steel Institute, the Iron and Steel Manufacturers Association, the Steel Pipe Import Committee, and the American Steel Construction Association, stated that the abolition or reduction of tariffs will lead to a surge in imports. The steel industry has been vigorously proclaiming in recent months that the next government will need to cooperate with trade allies to force countries like China to reduce overcapacity, which is driving down global steel prices.
These organizations said that unfortunately, the Covid-19 pandemic has frustrated the recovery of the steel industry. The epidemic caused a sharp drop in demand last spring. The steel industry manufacturers either cut production or shut down completely.
The Iron and Steel Organization also stated that the Organization for Economic Cooperation and Development expects that the overcapacity of the global steel industry will increase to 700 million tons in 2020. Although the pandemic has led to a decline in global demand for steel, countries such as China, Vietnam, and Turkey continue to increase steel production. Biden has not disclosed how he will deal with steel and aluminum tariffs.