4 ms·

They're idling one in Europe too and have said it's related to global demand. https://agmetalminer.com/2019/06/19/this-morning-in-metals-u-s-steel-announces-id

by skrowl 7y ago

They're idling one in Europe too and have said it's related to global demand. https://agmetalminer.com/2019/06/19/this-morning-in-metals-u-s-steel-announces-idling-of-plants/ https://agmetalminer.com/2019/06/19/this-morning-in-metals-u... "We are idling two blast furnaces in the United States and one blast furnace in Europe to better align our global production with our order book." This is just CNN / anti-Trump journalists trying to blame Trump.

legitster 7y ago
It doesn't change the fact that, at best, the tariffs had marginal benefits to the one and only industry they were designed to benefit.
- mfatica 7y ago
  > the one and only industry Not true at all. Agriculture, semiconductors, consumer electronics, and automotive are examples of other industries tariffs are designed to benefit. Steel is one of many.
  - arcticbull 7y ago
    How are the agriculture, semiconductor and electronics industries supposed to benefit from steel tarriffs?
    - ilikehurdles 7y ago
      The only one I see potentially affected here is agriculture (specifically, manufacturing for agricultural uses), in that businesses have to spend more on steel or buy lower quality steel because they couldn't afford the higher price.
    - Retric 7y ago
      Politics makes strange bedfellows. They all benefit from tariffs. Further, by acting collectively it’s easier to get your own pork spending when you support others pork spending. Get several groups who care a lot about their own issues and little for each other’s issues, and you can push polices that most people disagree with. Of course you need to be carful as alliances pool both support and opposition.
  - hedora 7y ago
    I don’t see how any of those other industries can be expected to benefit from the tariffs: The tariffs were designed to hurt agriculture, or at least treat it as acceptable collateral damage. It was obvious the Chinese would retaliate by targeting US farmers, and then they did. How is automotive supposed to benefit from tariffs against Mexico, which the industry heavily relies upon? How do consumer electronics benefit from tariffs on Chinese electronics components when the tariffs simply force production to other non-US countries (where production plants are already ramped up)? Note that the tariffs on Chines components mean that US assembled consumer devices get taxed at 25%, but foreign (non Chinese) assemblers don’t. Semiconductors are mostly made in the US, Japan, and South Korea. How do tariffs on Chinese goods help shore up US dominance there? https://www.worldatlas.com/articles/all-about-the-semiconductor-industry.html https://www.worldatlas.com/articles/all-about-the-semiconduc...
    - Retric 7y ago
      Sugar tariffs are what enable the massive corn industry to sell otherwise more expensive product corn syrup as a sweetener. Collectively tariffs are a massive subsidy to US agriculture even if not every farmer beniftis equally.
      - pravda 7y ago
        Sugar tariffs are designed to hurt every single American and benefit a few multi-millionaire sugar producers in Florida. Since Florida is a 'swing state', this will never change.
        Retric 7y ago
        Congress enacted the first sugar tariff in 1789. Politics has changed a lot over time. However, it’s the substitutes of sugar beets outside Florida not sugar cane that provides most US sugar production. That’s currently less relevant at industrial scales where corn is a fine substitute even if it’s a slightly different chemical and not granular.
    - drocer88 7y ago
  - pjc50 7y ago
    I work for a US multinational semiconductor company, and the Huawei sanctions took 20% off our share price. It's an interconnected world.
awinder 7y ago
Source article points out that tariffs/threats lead to stockpiling of steel, which lead to more capacity coming online given the sales volumes -- but then companies ate from their stockpiles leading to a double-whammy of increased production / decreased demand. So yes, it's related to global demand -- global demand that went on a primary rollercoaster ride triggered by tariffs. And the news media is rightfully blaming the 1 person (not even party, singular person) for the consequences of their actions. What a sordid state of affairs indeed.
microwavecamera 7y ago
From the article you posted: “In response to current market conditions, we are taking actions aligned with our strategy by adjusting our global blast furnace footprint,” the steelmaker said in a release. Hmmm, I wonder what those "current market conditions" could possibly be? Also from the link you posted: As the U.S. and China move toward a resumption of trade talks this month, China has lowered its tariff rates for some other countries, CNBC reported citing an analysis by the Peterson Institute for International Economics. ... Last month, the U.S. raised tariffs on $200 billion of Chinese products, to which China responded with tariffs on $60 billion in U.S. goods.
forgotmysn 7y ago
ya shame on them for blaming Trump for his own actions

by skrowl 7y ago

legitster 7y ago

It doesn't change the fact that, at best, the tariffs had marginal benefits to the one and only industry they were designed to benefit.

mfatica 7y ago
> the one and only industry Not true at all. Agriculture, semiconductors, consumer electronics, and automotive are examples of other industries tariffs are designed to benefit. Steel is one of many.
- arcticbull 7y ago
  How are the agriculture, semiconductor and electronics industries supposed to benefit from steel tarriffs?
  - ilikehurdles 7y ago
    The only one I see potentially affected here is agriculture (specifically, manufacturing for agricultural uses), in that businesses have to spend more on steel or buy lower quality steel because they couldn't afford the higher price.
  - Retric 7y ago
    Politics makes strange bedfellows. They all benefit from tariffs. Further, by acting collectively it’s easier to get your own pork spending when you support others pork spending. Get several groups who care a lot about their own issues and little for each other’s issues, and you can push polices that most people disagree with. Of course you need to be carful as alliances pool both support and opposition.
- hedora 7y ago
  I don’t see how any of those other industries can be expected to benefit from the tariffs: The tariffs were designed to hurt agriculture, or at least treat it as acceptable collateral damage. It was obvious the Chinese would retaliate by targeting US farmers, and then they did. How is automotive supposed to benefit from tariffs against Mexico, which the industry heavily relies upon? How do consumer electronics benefit from tariffs on Chinese electronics components when the tariffs simply force production to other non-US countries (where production plants are already ramped up)? Note that the tariffs on Chines components mean that US assembled consumer devices get taxed at 25%, but foreign (non Chinese) assemblers don’t. Semiconductors are mostly made in the US, Japan, and South Korea. How do tariffs on Chinese goods help shore up US dominance there? https://www.worldatlas.com/articles/all-about-the-semiconductor-industry.html https://www.worldatlas.com/articles/all-about-the-semiconduc...
  - Retric 7y ago
    Sugar tariffs are what enable the massive corn industry to sell otherwise more expensive product corn syrup as a sweetener. Collectively tariffs are a massive subsidy to US agriculture even if not every farmer beniftis equally.
    - pravda 7y ago
      Sugar tariffs are designed to hurt every single American and benefit a few multi-millionaire sugar producers in Florida. Since Florida is a 'swing state', this will never change.
      - Retric 7y ago
        Congress enacted the first sugar tariff in 1789. Politics has changed a lot over time. However, it’s the substitutes of sugar beets outside Florida not sugar cane that provides most US sugar production. That’s currently less relevant at industrial scales where corn is a fine substitute even if it’s a slightly different chemical and not granular.
  - drocer88 7y ago
- pjc50 7y ago
  I work for a US multinational semiconductor company, and the Huawei sanctions took 20% off our share price. It's an interconnected world.

awinder 7y ago

Source article points out that tariffs/threats lead to stockpiling of steel, which lead to more capacity coming online given the sales volumes -- but then companies ate from their stockpiles leading to a double-whammy of increased production / decreased demand. So yes, it's related to global demand -- global demand that went on a primary rollercoaster ride triggered by tariffs. And the news media is rightfully blaming the 1 person (not even party, singular person) for the consequences of their actions. What a sordid state of affairs indeed.

microwavecamera 7y ago

From the article you posted: “In response to current market conditions, we are taking actions aligned with our strategy by adjusting our global blast furnace footprint,” the steelmaker said in a release. Hmmm, I wonder what those "current market conditions" could possibly be? Also from the link you posted: As the U.S. and China move toward a resumption of trade talks this month, China has lowered its tariff rates for some other countries, CNBC reported citing an analysis by the Peterson Institute for International Economics. ... Last month, the U.S. raised tariffs on $200 billion of Chinese products, to which China responded with tariffs on $60 billion in U.S. goods.

forgotmysn 7y ago

ya shame on them for blaming Trump for his own actions