The Turkish Steel Exporters' Association (CIB) chairman Namık Ekinci has stated that, if the US imposes 53 percent duty on steel imports from certain countries including Turkey, Turkey’s steel exports to the US will come to a halt. US President Trump is expected to announce his decision regarding the Section 232 investigation carried out the US Department of Commerce by April 11.
According to the CIB’s statement, there are three different options in the report presented to Trump under the Section 232 investigation. The first option is the introduction of at least 24 percent additional taxes on steel imports from all countries. The second option is the imposition of a 53 percent duty on steel imports from certain countries including Turkey, Brazil, China, Costa Rica, Egypt, India, Malaysia, South Korea, Russia, South Africa, Thailand and Vietnam and the introduction of an import quota for the remaining countries equal to the volume of their steel exports to the US in 2017. The third and last option offers a quota of 63 percent of 2017 import levels for all countries.
According to the data from the CIB, in 2017 Turkey’s steel exports to the US decreased by 22.5 percent year on year to 1.83 million mt, with a value of $1.12 billion. Meanwhile, in January this year, Turkey’s steel exports to the US declined sharply by 83.6 percent year on year to 42,000 mt.
The CIB stated that, against the possible measures of the US, the EU and countries like China and Japan will guard themselves if necessary and this will trigger a world trade war. As regards Turkey, the CIB said that the Turkish steel industry maintains its belief that the US will not take such a decision, which is unfair, though, if the US rules against steel imports from Turkey, the Turkish political authorities are expected to take the necessary steps.
According to Mr. Ekinci, the possible measures of the US will not only harm its own steel industry but it will also affect the whole world economy. Stating that this move by the US means the transfer of profits from the US community to the inefficient US steel industry, Mr. Ekinci added that the CIB believes that this unfair decision will be prevented by law.
The CIB chairman also stated that the Turkish steel industry will continue its scrap imports from the US within the framework of the World Trade Organization (WTO) rules, though scrap imports from the US will be reduced as well. Regarding Turkey's steel imports from the US, Mr. Ekinci stated that they are small in volume, but should also be reviewed.