The American Institute of International Steel (AIIS) issued a report this week from economic analyst firm Martin Associates regarding the impact of imported iron and steel on the US economy and the effect of steel tariffs on the broader US steel supply chain.
The report noted that 34.4 million net tons of iron and steel handled at US ports in 2016 supported 1.3 million jobs and $239.8 billion of total economic activity, which is 1.3 percent of total US GDP for the year.
“With the potential imposition of trade restrictions and quotas on imported iron and steel products being discussed in Washington by the current administration,” the report said, “it is critical to advance a defensible understanding of the importance of imported iron and steel products to the ports and transportation logistics supply chains that are the conduit for delivery of these products to the end users, as well as to the domestic industries that are dependent on the use of imported iron and steel products.”
In addition to the economic impacts generated by the imported steel, the report emphasized that the majority of the ocean vessels carrying imported steel into US ports, especially in the Gulf coast and Great Lakes, provide the backhaul vessel capacity to move agriculture exports from the US to overseas destinations. If steel imports are restricted, poultry, grain, and other agriculture interests would face “drastically increased shipping costs” along with the potential for retaliatory tariffs, thus reducing access to key export markets.
As the Department of Commerce continues Section 232 investigations into US steel imports to determine if they threaten national security, the AIIS urges the department to take the above economic impact into consideration before releasing results.