Impact of Tampa Tariffs Discussed at US Steel Conferences

Market participants in Steel announced their benefits and challenges with the US Section 232 tariffs in panel discussions Wednesday at Tampa Steel's 30th Annual Conference.

“The steel trade administration’s policy is working,” said Philip Bell, president of the Steel Producers Association. Bell added: "This is something that other administrations have been afraid to do for decades, and I'm glad this administration had the courage and the courage to do it."

Other panellists argued that the benefits to American mills were that tariffs were inflated relative to other parts of the steel supply chain.

“I would argue that what tariffs actually did have spiked steel prices, leading to windfall profits for a small group of companies,” said Richard Criss, president of the American Institute for International Steel.

Criss then cited that the recent record increase in profits for Nucor, Steel Dynamics Inc. and AK Steel is associated with tariffs. “All of these companies were not profitable until 232 tariffs,” he added.

“I don't think profit is a bad word. Congratulations to [the domestic plants] for their work and hopefully they continue to reinvest them in the domestic steel industry, ”said Todd Libow, CEO of Majestic Steel.

Libow added that the positive effect of 232 tariffs is a more stable volume of domestic supplies. “We can better plan for growth and investment because volumes have been more stable,” he said.

Jean Carroll Kemp, Vice President of the Steel Producers Association, or SMA, also noted the importance of steel producers creating an environment in which new investment is possible.

“The US industry has experienced a stagnant growth situation where we have used no more than 75% of the opportunities since the 2008 financial crisis, and this is not sustainable,” she said. She added that if there is a situation where manufacturers cannot invest or cannot do research and development, you risk losing the industry.

However, other speakers argued that tariffs had a disproportionate impact on smaller consumers.

“Small steel consumers are hit hardest by the 232 tariffs,” said Paul Nathanson, partner at Bracewell LLP representing the Coalition of American Metal Producers and Users (CAMU). "In the end, [small consumers] all lose out on this huge tax hike, because let's remember that these tariffs are not paid by foreign suppliers, but by American consumers."

Chris Casey, chief executive of the Independent Steel Alliance, agreed with Nathanson's views on the comparison of tariffs and taxes.

"For the consumer