Why are the Europeans/Orientals starting a trade war over steel ? US steel is the best in the world, produced at a price the consumer likes - if the Europeans ban it they are depriving their own people of the best available product - that smacks of Communism to me, mister.

A couple of related things:

http://www.steel.org/facts/power/action1.htm
http://www.steel.org/news/pr/1999/pr990219.htm

royxg:
Why are the Europeans/Orientals starting a trade war over steel ? US steel is the best in the world, produced at a price the consumer likes - if the Europeans ban it they are depriving their own people of the best available product - that smacks of Communism to me, mister.


You've got this totally around the wrong way. Bush slapped a 30% tariff on EU steel imports last month to protect the ailing US steel industry (oddly enough just before some important votes for the Congress in November). This will cost EU steel companies an estimated US$2bn a year. A very nice 'F*** You!' from Bush for our help in the war on terrorism.

The EU is now considering imposing punitive tariffs on other US goods (not steel - we don't import it!).

More evidence the US couldn't give a damn about its international responsibilities, free trade or helping its friends. International criminal court, Kyoto, ABM treaty - what's your word worth?

Forgot to add:

Steel Dispute (http://news.bbc.co.uk/hi/english/business/newsid_1856000/1856752.stm)

This is nothing but a politically calculated move. This is a page out of Bill Clinton's book. It is not about free trade vs protecting an industry. The republicans are facing a midterm election later this year and they are trying to win the Senate back. The Bushies figured they will gain more votes than they lose.

The 35% tarriff is also carefully calculated. (I hope) You make money from import but you lose money since everything that requires steele will be more expensive. The 35% should be the optimum point. (I hope)

US steel industry is the last group of companies to automate. They are hoping the government could protect them so that they dont have to. It has been going on for the last 20 years. As I write this post, my sales person is going to see one today to convince them to buy our services to improve their performance (one in Ohio). But as long as the government is protecting them - that is not likely to happen.

This is the time to automate while under protection. It is good for the country too - people will get jobs etc.

The 35% tarriff is also carefully calculated. (I hope) You make money from import but you lose money since everything that requires steele will be more expensive. The 35% should be the optimum point. (I hope)

I think your crediting our glorious congressmen with more competence than they dewserve.

For the economically gifted ...
Please explain to me why Europe needs to import AND export steel? And the same for the US of A? If everyone is so concerned about the tariffs why not start using your OWN product?

There are many different types and qualities of steel suited to different products and purposes. Different nations have different ingredeients and different steels.

Thats a nice way of saying "look around fool and stop reading your own national propaganda - your steel is NOT necessarily the best in the world, despite what you may have been told" :)

oh and Adam... I'm trying... and failing... ;)

Originally posted by Eman Resu
For the economically gifted ...
Please explain to me why Europe needs to import AND export steel? And the same for the US of A? If everyone is so concerned about the tariffs why not start using your OWN product?

US export oil as well believe it or not. :eek:

I don't exactly know how that works :D

US imports automobiles too - inspite of several US and Japanese car manufacturing plants here. We also export cars to Japan too - just a few.

It has something to do with supply and demand. People just want Japanese cars or American cars anywhere on the planet. Life would be boring if you drive just one kind no matter how cheap or great it is!

I guess that is called "commerce". From spice and silk trading to Nike....

You have hit the nail right in the heart partner. America is the greatest country there is. We don't need anyone else's steel. We have more than anyone else. And ours is better by far. Plus I hear that the Orientals use far more recycled material than we do.

Again: http://www.steel.org/news/pr/1999/pr990219.htm

The USA imports heaps of steel. They DO NOT have what they need.

Originally posted by Adam
The USA imports heaps of steel. They DO NOT have what they need.

We do have what we need but collecting is difficult. Everyday, just our house throws out at an average rate of 5 pounds of steel cans. We do recycle aluminum cans...

There was a recent documentary on PBS. On there, they showed that if everyone in the US recycled all currently avaialble material, the US would be net exporters of steel, iron, aluminum, copper and zinc. Also, if more of our packaging was metal-based (e.g. milk, yogurt, butter containers, washing detergent boxes, etc), the US would be the lowest cost producer of any nation on earth, for most base metals.

Originally posted by M. Jumbo
There was a recent documentary on PBS. On there, they showed that if everyone in the US recycled all currently avaialble material, the US would be net exporters of steel, iron, aluminum, copper and zinc. Also, if more of our packaging was metal-based (e.g. milk, yogurt, butter containers, washing detergent boxes, etc), the US would be the lowest cost producer of any nation on earth, for most base metals.

That is not what I heard recently. According to a recent segment on CNBC, it is cheaper to throw metal away rather than recycling. It is cheaper to dig metal out of the ground than to use recycled metal.

It's called intraindustry trade. Two countries with the same industry trade products of that industry. There's reasoning behind it, typically product differentiation. For instance, we import German cars, and Germany imports US cars. The reason is that they are slightly different, yet the same product. Not all cars are identical, and some people in the US say, "Hey, I want *that* car, the German one!" And some people in Germany say, "Hey, I want that American car!"

More evidence the US couldn't give a damn about its international responsibilities...
Well that's a bit of a sweeping generalization, don't you think? I'm a US citizen, and I care about international responsibilities, therefore that statement is incorrect. :) Granted, part of the US doesn't give a damn, but part does.

This will cost EU steel companies an estimated US$2bn a year. A very nice 'F*** You!' from Bush for our help in the war on terrorism.
Fair enough, but what if that same tariff generates $4 billion for US industries? Even if it doesn't (which it probably won't, but still), the US has an obligation to protect it's own interests. Frankly, if the US made every decision based on how it helps <b>other</b> countries, there'd be no US anymore. I'm not saying it's right, but honestly, the US has to protect its own industries. Without government regulation there'd be nothing but monopolies and imported goods, and no one wants that, unless you're a communist of course.