The United States uses about 100 million metric tons of steel per year, with more than 60% of the steel coming from imports. According to a report by the International Trade Administration’s Global Steel Trade Monitor, the United States had imported close to 27 million metric tons of steel between January and September 2017. This amount of imports makes the United States the largest importer of steel in the world. The United States imported the largest amount of steel from Canada in 2017.
Top 10 Steel Exporters To The US
Canada makes up for 16% of imported steel in the United States, making the country the biggest exporter of steel to the United States. In 2017, the US spent $5.53 billion on steel imports from Canada. About 88% of Canadian steel exports in 2016 were taken up by the US according to a director at Oxford Economics. An amount of 5.4 metric tons of steel was imported by the US from Canada in 2016, amounting to $5.87 billion. According to the Canadian Steel Producers Association, five core provinces of Canada export Canadian-made steel products to the US. These provinces include Ontario, Quebec, and Alberta. Ontario exports about $4.8 billion in steel to the United States while Quebec exports about $611 million.
Brazilian steel amounts to 13% of steel imports by the United States. In 2017, Brazil was considered the world’s eleventh largest steel exporter, having exported 3.8 million metric tons of steel. The United States imported 30% of Brazil’s steel exports amounting to 1.1 million metric tons, becoming the number one destination of steel from Brazil in 2017. The export amount represents a fall of about 3% compared to the 2016 imports. Brazil has been producing steel from 1920s to 1930s. The country is now considered one of the ten largest steel industries in the world.
South Korean steel makes up for 10% of steel imports into the United States, making South Korea the third largest among the countries that export steel to the US. The US imported 3.6 million tons of steel products from South Korea amounting to $3.4 billion in 2017. From the year 2014 to 2017, South Korean steel exports to the United States have dropped almost by 31.5%. South Korea is fourth largest steel exporter in the world, exporting about 15.7 million metric tons in 2017. Major steel companies in South Korea are Posco and Hyundai Steel. The two companies export less than 5% of its steel exports to the United States.
Tax on Steel Imports
The president of the United States, Donald Trump, proposed a 25% tariff on steel imports. The president’s move is intended to protect American jobs. The move could precipitate a global trade war since many countries in business with the United States have threatened to take actions against the US. Following the announcement of the imposed tariff on steel imports, the world stock markets tumbled. Wall Street experienced a sharp sell-off that caused panic in Asian markets. Canada and Mexico were promised exemption from the tariffs by the president of the United States.