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US sanctions against Turkish steel: the damage is already done

In retaliation for Turkey's military intervention in Syria, the US president has just announced that Turkish steel imports would be taxed at 50%. In reality, these Turkish imports have already been reduced to nothing.

If they apply, US sanctions against Turkish steel will not have much effect. For the good reason that there is not a lot of Turkish steel to go back to the United States. It must be remembered that Washington had already imposed taxes of 25% on many foreign steels in June 2018 and that the US administration had quickly doubled this percentage for Turkey, at the time of the standoff with Ankara to release Pastor Andrew Brunson of Turkish jails.

Turkey is only the 19th supplier in the US

Turkish steel was therefore already taxed at 50% for almost a year. These taxes were reduced to 25% last May by Washington. But for the steel trade between Turkey and the United States, the damage was already done. With a 38% drop in 2018, Turkish steel exports plunged by 76% in 2019, according to US Customs data. Turkey exports hot rolled steel of lower value. With taxes it was not competitive at all, given the transport distances. As the 7th largest supplier in the United States in 2017, with 1.7 million tonnes of steel, Turkey dropped to 19th with just over 200,000 tonnes.

The real blow of the club comes from Brussels

The Turkish steel industry has already suffered. Especially as with the economic crisis in Turkey the domestic demand for steel for construction, automotive or household appliances, also fell by 31% over one year last July. Last but not least, the European Union, at the request of its steelmakers, put in place safeguard measures against Turkish steel, which had massively moved from the US market to the European market. Brussels has imposed new taxes, but especially a quota of 30% per country. As Turkey has already filled in in September, it will have to wait ... July 2020 to be able to re-export to Europe, which had become its safe haven with 7 million tonnes last year, 35 times more than to the United States. United ! The real blow to Turkish steel is therefore the European Union that gave it this fall. The return to 50% of US taxes will not change much.