“It doesn’t matter what the company sells, if they sell cheap, they cut corners to be able to make money. Quality, Service or Price: if they sell low-price they must compromise either quality or service. A business can’t be profitable long term providing all three.”
7 Secrets Your Steel Suppliers Won’t Tell You, Adam Osborn
The United Steelworkers union wants tariffs and quotas eliminated for Canada. The USW is asking Canada to reject the present tariffs and the proposed quotas.
Since Section 232 was signed into law, Canada has been subject to 25% tariff on steel exports and 10% tariff on aluminum exports to the United States.
In addition, the USW is suggesting Canada not ratify the US-Mexico-Canada Agreement (USMCA), until both the Section 232 tariffs are stopped and the threat of future quotas are removed.
The US-Mexico-Canada Agreement (USMCA) is set to replace the North American Free Trade Agreement (NAFTA). But it has not been ratified.
On October 19th, USW Canadian director Ken Neumann said, “There is no justification for Canada to accept US quotas on Canadian steel and aluminum, just as there is no justification for the spurious national security tariffs the US imposed on our steel and aluminum. Both quotas and tariffs must be rejected outright by the Canadian government.”
In March of this year, the Trump administration implemented Section 232. One reason cited for the tariffs was national security concerns. On June 1st, the tariffs were then extended to US allies, including Canada and Mexico.
In an interview with AMM, American Iron & Steel Institute (AISI) president Thomas J Gibson, said the tariffs on Canada and Mexico might be replaced by quotas.
Canada is our top supplier of hot-rolled coil, which account for 46.3% of all HRC exports to the US, since January 2018.
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