Biden To Announce Tariff Hikes On Chinese Steel, Aluminum Imports: Another 'Hit To Real Income And Consumer Spending,' Economist Cautions
Portfolio Pulse from Piero Cingari
President Joe Biden plans to announce a 25% tariff on specific Chinese steel and aluminum imports during a visit to Pittsburgh, aiming to strengthen the domestic steel sector and counteract China's unfair trade practices. The tariffs, affecting $1.7 billion worth of imports, are part of broader efforts to protect American manufacturing jobs and address industrial concerns. The proposal also includes a review of China's shipbuilding practices and collaboration with Mexico to prevent indirect Chinese steel imports. Economist Ronnie Walker from Goldman Sachs warns that the tariffs could lead to higher consumer prices and have a modestly negative impact on GDP.
April 17, 2024 | 1:22 pm
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United States Steel Corp. (NYSE:X) is highlighted in Biden's plan to impose tariffs on Chinese steel and aluminum imports, aiming to strengthen the domestic steel industry and protect it from foreign acquisitions.
The direct mention of United States Steel Corp. (NYSE:X) in the context of protecting it under American control and the imposition of tariffs on Chinese steel and aluminum imports suggests a positive outlook for the company. The tariffs are likely to reduce competition from cheaper Chinese imports, potentially increasing demand for domestic steel. This could lead to higher revenues and possibly an improved market position for United States Steel Corp. in the short term. However, the overall impact will depend on the company's ability to capitalize on these changes and the market's response to the new tariffs.
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