Last Friday President Trump doubled the tariffs on Turkish steel to 50%.
“I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar!” Trump tweeted. “Aluminum will now be 20% and Steel 50%. Our relations with Turkey are not good at this time!”
How this plays out in the market is yet to be seen so far. There are tensions between the two countries, over the detention of evangelical pastor Andrew Brunson.
Turkey is holding the US Citizen which the US administration claims to be falsely accused. Also, Turkey’s currency has dropped over 20%, which was seen as offsetting the impact of the 25% original tariff. For those 2 reasons, President Trump decided last Friday to increase the tariff.
Turkish imports to our Gulf Coast Market have been supplying:
- Galvanized sheet coil – which Ace has some on order from Turkey coming later this year.
- Hot Rolled sheet and plate coil – their offers have been sporadic.
- Rebar – they’ve been a major supplier of rebar.
It is likely the price of rebar will go up, because of the present situation with Turkey.
The AMM reports, “US trader sources indicated that they had not been expecting increased tariffs on Turkish imports. Instead, many had been more concerned that the 232 tariffs would be removed or eased on traditional US allies and trading partners – such as Canada, Mexico and the European Union – while being left in place for other nations.”
I still believe we are close to getting a deal with Mexico, which will help to free up capacity supplies for the Gulf Coast Market. Others will likely follow soon after, if we get a deal with Mexico and the European Union.
It is best to go with a proven expert in their field. Call us if your company requires a secure supply of stainless, aluminum, cold-rolled or galvanized sheet metal.
We can help you with any stocking requirement level. From a few skids to hundreds of tons. We will help you schedule out the material you need to meet production without shortages.
CALL NOW 832-300-1030.