2018-03-09 — davidstockmanscontracorner.com
... last year China produced 800 million tons of steel, which is more than the next 40 worldwide suppliers combined; and even then this tsunami of steel came from a partially idled industry that actually has 1.2 billion tons of capacity.
Stated differently, the world is drowning in China's excess steel capacity.But since it has now diverted most of the exports it was previously dumping on the US market to other customers, the Donald's tariff won't amount to even a pinprick.
To wit, in 2017 China was only the #12 steel importer at 800,000 tons into the 107 million ton US end market. Its shipments compared to 36 million tons of total steel imports. Accordingly, we'd be surprised if the Donald's tariff would add even $100 million to the landed cost of China's current exports to the US.
That's right. the Donald is hitting the steel users of the US with a notional $7.5 billion tariff cost in order to smack the real target----the Red Ponzi---with what amounts to just 1.4% of the total upcharge.
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