Connect with us

Latest

News

America

Trump’s steel tariffs impact American manufacturers

But as far as Trump, is concerned, Trade wars are necessary, and they’re easy to win 

Published

on

217 Views

Lots of production and jobs are on the line as the effects of Trump’s metals tariffs work their way down the food chain. Several companies that utilize steel as a primary material for the products they produce are concerned about how these tariffs will impact their competitiveness, their workforce, and their bottom lines.

ABC News reports:

Joel Johnson examines the shipping labels on 35-ton coils of American-made steel that will be unspooled, bent and welded into rounded sections of pipe.

One’s from Nucor, a mill in Arkansas. Another’s from Steel Dynamics in Mississippi. But much harder to spot in the sprawling factory yard is the imported steel that’s put his company in the crosshairs of President Donald Trump’s bitter trade dispute with America’s allies and adversaries.

Trump says his tariffs on steel, aluminum and other goods will put U.S. companies and workers on stronger footing by winding back the clock of globalization with protectionist trade policies. But the steel tariff — essentially a 25 percent tax — may backfire on the very people the president is aiming to help. The Commerce Department has been deluged with requests from 20,000 companies seeking exemptions.

Johnson is the CEO of Borusan Mannesmann Pipe US, a company with Turkish roots that manufactures the welded pipe used by energy companies to pull oil and natural gas out of the earth. He has been fighting an uphill battle to get a two-year exemption from Trump’s tariff on steel imports.

Without a waiver, Johnson said, Borusan faces levies of up to $30 million a year — a staggering sum for a business with plans to expand.

“We don’t have any proof we’re being heard,” Johnson said.

Eighty miles southwest, in Bay City, global steel giant Tenaris also is seeking an exemption from the tariffs. The company churns out steel pipe in a $1.8 billion state-of-the-art facility that began operating late last year, using solid rods of steel called billets that are made in its mills in Mexico, Romania, Italy and Argentina. Of the four, only Argentina has agreed to limit steel shipments to the U.S. in exchange for being spared the tariff.

“The decision is out of our hands,” said Luca Zanotti, president of Tenaris’s U.S. operations, while expressing confidence its request would be approved. If it’s not? “We’ll adapt,” he said.

Steelworkers, meanwhile, are cheering the tariff even as they remain skeptical of Trump’s pledge to empower blue-collar Americans. They also worry about the possibility of too many exemptions.

“You put these tariffs (in place) but now you’re going to exclude everybody so they’re kind of pointless,” said Durwin Royal, president of United Steelworkers’ Local 4134 in Lone Star, Texas.

The diverse views illustrate the complexity, confusion and concern lurking behind Trump’s “America First” pledge.

Pipe mills are numerous in Texas, which leads the country in oil and natural gas production. Factories that use imported steel typically do so when they can’t get the exact type or quantity they need from U.S. producers. Many of them are among the thousands of companies that have filed exclusion requests to avoid being hit by the steel tariff.

Most of them are in the dark, unsure if their applications will be approved as the Commerce Department struggles to process a dramatically higher number of requests than it expected to receive.

A denial may torpedo plans to expand a factory. Or a company may have to lay off employees. The stakes are especially high in Texas: Economists Joseph Francois and Laura Baughman have estimated the Trump steel tariff and separate 10 percent tariff on imported aluminum will trigger the loss of more than 40,000 jobs.

There’s no playbook to guide companies through an exemption process Johnson described as chaotic and unpredictable. He’s hired a lobbyist, former New York Gov. George Pataki. He’s fending off opposition from competitors, including a Tenaris-owned business, who want Borusan’s request denied.

On a sweltering afternoon earlier this month, Johnson assembled dozens of his employees in an air-conditioned room for what amounted to a Hail Mary pass. After lunching on sandwiches from Chick-fil-A, Borusan workers wrote personal messages on oversized postcards to be sent to Trump and other senior officials in Washington and Austin, the Texas capital, pleading for their help in securing the tariff exemption.

“I don’t know what motivates politicians besides votes,” Johnson said. “That’s why we’re doing this crazy exercise.”

———

UNION BLUE

Royal is in his third term as the president of Local 4134.

He and the local’s vice president, Trey Green, are union Democrats in the heart of Trump country. Lone Star is in Morris County, Texas, where Trump received nearly 70 percent of the vote in the 2016 presidential election. Royal and Green initially backed independent Vermont Sen. Bernie Sanders before casting their votes for Democrat Hillary Clinton.

Their union hall is a mile and a half from the U.S. Steel factory that manufactures welded pipe made from metal produced in the company’s mills in Indiana and Illinois. Like the union, U.S. Steel backed Trump’s tariff, declaring that his action would “level the playing field” by blocking other countries from dumping inexpensive steel in the United States. Much of it comes from China.

Although Royal and Green were heartened by the steel tariff, they said they’re under no illusion Trump is a friend to organized labor. Nor are they convinced his tough talk on trade will lead to a rebuilt U.S. steel industry with more and better jobs. Echoing Sanders, they called for a broader strategy to prevent corporations from sending American jobs to low-wage countries.

“I don’t know that putting tariffs on just one or two particular items are going to be the mainstay that helps us in the future,” Green said.

Royal and Green said they’re still waiting for Trump to follow through on his pledge to empower working-class Americans that he said were “forgotten” by Washington.

“So much money is in politics now it’s kind of drowning people like us out,” Royal said. “We’re not going to take (a congressman) to dinner and buy him a new set of golf clubs or give $250,000 toward his campaign. You can tell who’s got the loudest voice there.”

———

COST OF DOING BUSINESS

The Tenaris factory is a massive, modern facility just off the highway leading into Bay City, 21 miles from the Gulf of Mexico. About 640 people work here, but only a handful come into direct contact with the 50,000 tons of pipe the 1.2 million-square-foot factory is able to manufacture each month. The process is almost entirely automated, watched over by employees huddled in front of computer screens.

The company manufactures seam-free pipe typically used in offshore energy production or for transporting highly corrosive gas.

Tenaris began construction of the Bay City plant five years ago, long before anyone anticipated an American president would slap a tariff on steel. Zanotti declined to say how much Tenaris may have to pay, but he downplayed the expense as a cost of doing business on a global scale. Tenaris operates in 16 countries, including Nigeria, which ranks 145 out of 190 countries on the World Bank’s “ease of doing business” index.

“Of course we don’t like it,” Zanotti said of the tariff.

But, he added, “we’re used to dealing with moving parts. This is another moving part.”

The company doesn’t have a registered lobbyist in Washington, let alone an office. But Tenaris has deep pockets and is in the U.S. for the long haul.

Zanotti said the company has spent $8 billion over the last decade to expand its foothold in America, a figure he doesn’t think the Commerce Department should overlook. The investment includes the Bay City factory and the acquisition of the Maverick Tube Corporation, based in Houston. Like Borusan and U.S. Steel, Maverick makes pipe with a welded seam.

“We’re positive we’re going to get a good conclusion,” Zanotti said.

———

LET’S MAKE A DEAL

Johnson said he has a proposition for a president who prides himself on being a master dealmaker.

About 60 percent of Borusan’s welded pipe is manufactured with American-made steel. The rest is shipped from Turkey already in tube form; it’s heat-treated, threaded and inspected in Baytown. Johnson is proposing that Borusan be allowed to bring in 135,000 tons of Turkish pipe each year for the next two years, tariff-free. In return, the company will build a new factory, right next to its existing plant.

That’s a $75 million investment that will allow Borusan to hire 170 new employees, augmenting its existing workforce of 267, according to Johnson. The expanded capacity also will allow Borusan to wean itself from the Turkish imports. He said he’s gotten no reply to his pitch.

The company brought ex-Gov. Pataki, a Republican, on board in March and has paid him $75,000 to drum up support in Washington. But Johnson said he’s unsure if Pataki’s made a difference.

“We’re not politicians. We make pipe,” he said. “We felt like that was a move we had to make because we are so far out of our element.”

Johnson said he had for weeks unsuccessfully sought support from GOP Rep. Brian Babin, whose district includes Baytown. Babin wrote to Commerce Secretary Wilbur Ross on Thursday, expressing his strong support for Borusan’s request and urging Ross to give it “your highest consideration.”

“Finally,” Johnson said.

The Commerce Department has been posting the thousands of requests for tariff exemptions online to allow third parties to offer comments and objections — even competitors who have an interest in seeing a rival’s request denied. Several of them, including U.S. Steel and Tenaris-owned Maverick Tube, objected to Borusan’s bid, saying the Turkish pipe it imports is readily available from American suppliers. They added that Turkey has been cited by the Commerce Department for dumping steel pipe in the U.S.

But Johnson said the objections are aimed at undercutting Borusan. He said no U.S. pipe mill is serious about selling to him because he’d want very detailed information about their products — such as the composition of the steel and a history of customer complaints.

“They just don’t want to see another factory go up here,” Johnson said. “They don’t want to see a competitor grow.”

While American steel manufacturers love Trump’s tariffs, as they help improve their position on the market, it doesn’t bode so well for those manufacturers that have to use steel as a major component of their production. The US just doesn’t produce enough steel to meet the demands of its domestic market, let alone that of markets overseas. For this reason, many American manufacturers will still need to rely on imported steel to meet their production demand, which means that they will be meeting Trump’s tariffs head on, thereby increasing their production costs, which will invariably travel down the food chain to the consumer. That chain of events does not bode quite so well for Americans who depend on these industries for employment, as production cuts and costs could result in employment cuts. But as far as Trump, is concerned, Trade wars are necessary, and they’re easy to win.

 

 

Continue Reading
Advertisement
Comments

Latest

Putin, Trump meet in Helsinki for first bilateral summit

The Helsinki summit is the first ever full-fledged meeting between Vladimir Putin and Donald Trump. Their previous encounters were brief talks on the sidelines of the G20 and APEC summits in 2017.

Vladimir Rodzianko

Published

on

Russian President Vladimir Putin and US President Donald Trump are meeting in the Finnish capital of Helsinki for their first bilateral one-on-one meeting.

Trump arrived in the Finland capital a day early, while the jet of Putin, who wrapped up his nation’s hosting of the World Cup Sunday, touched down around 1 p.m. local time and the Russian president’s motorcade whisked him straight to the palace where the two world leaders are meeting.

Trump signed an August 2017 law imposing additional sanctions on Russia. The law bars Trump from easing many sanctions without Congress’ approval, but he can offer some relief without a nod from Congress.

Almost 700 Russian people and companies are under U.S. sanctions. Individuals face limits on their travel and freezes on at least some of their assets, while some top Russian state banks and companies, including oil and gas giants, are effectively barred from getting financing through U.S. banks and markets.

The agenda of the summit hasn’t been officially announced yet, though, the presidents are expected to discuss global crises, such as the Syrian conflict and Ukraine, as well as bilateral relations.

Stay tuned for updates…

Continue Reading

Latest

“Foreign entity, NOT RUSSIA” hacked Hillary Clinton’s emails (Video)

Rep. Louie Gohmert (R-Tx): Hillary Clinton’s cache of 30,000 emails was hacked by foreign actor, and it was not Russia.

Alex Christoforou

Published

on

A stunning revelation that hardly anyone in the mainstream media is covering.

Fox News gave Louie Gohmert (R-Tx) the opportunity to explain what was going on during his questioning of Peter Strzok, when the the Texas Congressman stated that a “foreign entity, NOT RUSSIA” hacked Hillary Clinton’s emails.

Aside from this segment on Fox News, this story is not getting any coverage, and we know why. It destroys the entire ‘Russia hacked Hillary’ narrative.

Gohmert states that this evidence is irrefutable and shows that a foreign actor, not connected to Russia in any way, intercepted and distributed Hillary Clinton’s cache of 30,000 emails.

Remember to Please Subscribe to The Duran’s YouTube Channel.

Via Zerohedge

As we sift through the ashes of Thursday’s dumpster-fire Congressional hearing with still employed FBI agent Peter Strzok, Luke Rosiak of the Daily Caller plucked out a key exchange between Rep. Louie Gohmert (R-Tx) and Strzok which revealed a yet-unknown bombshell about the Clinton email case.

Nearly all of Hillary Clinton’s emails on her homebrew server went to a foreign entity that isn’t Russia. When this was discovered by the Intelligence Community Inspector General (ICIG), IG Chuck McCullough sent his investigator Frank Ruckner and an attorney to notify Strzok along with three other people about the “anomaly.”

Four separate attempts were also made to notify DOJ Inspector General Michael Horowitz to brief him on the massive security breach, however Horowitz “never returned the call.” Recall that Horowitz concluded last month that despite Strzok’s extreme bias towards Hillary Clinton and against Donald Trump – none of it translated to Strzok’s work at the FBI.

In other words; Strzok, while investigating Clinton’s email server, completely ignored the fact that most of Clinton’s emails were sent to a foreign entity – while IG Horowitz simply didn’t want to know about it.

Daily Caller reports…

The Intelligence Community Inspector General (ICIG) found an “anomaly on Hillary Clinton’s emails going through their private server, and when they had done the forensic analysis, they found that her emails, every single one except four, over 30,000, were going to an address that was not on the distribution list,” Republican Rep. Louie Gohmert of Texas said during a hearing with FBI official Peter Strzok.

Gohmert continued..

“It was going to an unauthorized source that was a foreign entity unrelated to Russia.”

Strzok admitted to meeting with Ruckner but said he couldn’t remember the “specific” content of their discussion.

“The forensic examination was done by the ICIG and they can document that,” Gohmert said, “but you were given that information and you did nothing with it.”

According to Zerohedge “Mr. Horowitz got a call four times from someone wanting to brief him about this, and he never returned the call,” Gohmert said – and Horowitz wouldn’t return the call.

And while Peter Strzok couldn’t remember the specifics of his meeting with the IG about the giant “foreign entity” bombshell, he texted this to his mistress Lisa Page when the IG discovered the “(C)” classification on several of Clinton’s emails – something the FBI overlooked:

“Holy cow … if the FBI missed this, what else was missed? … Remind me to tell you to flag for Andy [redacted] emails we (actually ICIG) found that have portion marks (C) on a couple of paras. DoJ was Very Concerned about this.”

Via Zerohedge

In November of 2017, IG McCullough – an Obama appointee – revealed to Fox News that he received pushback when he tried to tell former DNI James Clapper about the foreign entity which had Clinton’s emails and other anomalies.

Instead of being embraced for trying to expose an illegal act, seven senators including Dianne Feinstein (D-Ca) wrote a letter accusing him of politicizing the issue.

“It’s absolutely irrelevant whether something is marked classified, it is the character of the information,” he said. Fox News reports…

McCullough said that from that point forward, he received only criticism and an “adversarial posture” from Congress when he tried to rectify the situation.

“I expected to be embraced and protected,” he said, adding that a Hill staffer “chided” him for failing to consider the “political consequences” of the information he was blowing the whistle on.

Continue Reading

Latest

Donald Trump plays good cop and bad cop with a weak Theresa May (Video)

The Duran – News in Review – Episode 55.

Alex Christoforou

Published

on

US President Donald Trump’s state visit to the UK was momentous, not for its substance, but rather for its sheer entertainment value.

Trump started his trip to the United Kingdom blasting Theresa May for her inability to negotiate a proper Brexit deal with the EU.  Trump ended his visit holding hands with the UK Prime Minister during a press conference where the most ‘special relationship’ between the two allies was once again reaffirmed.

Protests saw giant Trump “baby balloons” fly over London’s city center, as Trump played was his own good cop and bad cop to the UK PM, outside London at the Chequers…often times leaving May’s head spinning.

Even as Trump has left London, he remains front and center in the mind of Theresa May, who has now stated that Trump advised her to “sue” the European Union to resolve the tense negotiations over Brexit.

Trump had mentioned to reporters on Friday at a joint press conference with Theresa May that he had given the British leader a suggestion that she found too “brutal.”

Asked Sunday on the BBC’s Andrew Marr Show what that suggestion was, May: “He told me I should sue the EU. Not go into negotiation, sue them.” May added…

“What the president also said at that press conference was `Don’t walk away. Don’t walk away from the negotiations. Then you’re stuck.”‘

The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris summarize what was a state visit like no other, as Trump trolled the UK PM from beginning to end, and left London knowing that he got the better of a weakened British Prime Minister, who may not survive in office past next week.

Remember to Please Subscribe to The Duran’s YouTube Channel.

Via CNBC

It wasn’t exactly clear what Trump meant. The revelation came after explosive and undiplomatic remarks Trump made this week about May’s leadership — especially her handling of the Brexit negotiations — as he made his first official visit to Britain.

In an interview with The Sun newspaper published Thursday — just as May was hosting Trump at a lavish black-tie dinner — Trump said the British leader’s approach likely “killed” chances of a free-trade deal with the United States. He said he had told May how to conduct Brexit negotiations, “but she didn’t listen to me.”

He also praised May’s rival, Boris Johnson, who quit last week as foreign secretary to protest May’s Brexit plans. Trump claimed Johnson would make a “great prime minister.”

The comments shocked many in Britain — even May’s opponents — and threatened to undermine May’s already fragile hold on power. Her Conservative government is deeply split between supporters of a clean break with the EU and those who want to keep close ties with the bloc, Britain’s biggest trading partner.

Continue Reading

JOIN OUR YOUTUBE CHANNEL

Advertisement

Your donations make all the difference. Together we can expose fake news lies and deliver truth.

Amount to donate in USD$:

5 100

Waiting for PayPal...
Validating payment information...
Waiting for PayPal...
Advertisement
Advertisements
Advertisement
Advertisements

Quick Donate

The Duran
EURO
DONATE
Donate a quick 10 spot!

The Duran Newsletter

Trending