US Steel & automakers are in a battle over tariffs on foreign steel, which has shown that none of them is near to a solution to this problem & therefore, has encouraged a need for adopting new & comprehensive approaches.
The present state of US steel industry has been witnessing a battle between steel manufacturers & automakers over the tariffs on foreign steel in a bid to boost the growth of domestic steel industry.
Auto manufacturers are furious against the duties imposed on imported galvanized steel, which have kept the prices quite high that are ultimately passed over to vehicle buyers. However, US steel industry is claiming higher prices of steel in the future if the imports are increased causing over-dependence on imported steel.
Cheap foreign steel had earlier resulted in major decline in steel industry coping with expensive material & labor costs. From 1997-2004, 45 steel makers with around 40% in USA went bankrupt. Over 85,000 jobs had been lost in US during that period.
"US steel industry is closely linked with domestic economic growth & global steel market situation. The economics of the steel industry has been one of the reasons for its weak performance in the past", analyzes the report "US Steel Industry - Future Outlook" published by RNCOS.
Automakers are encouraging removal of tariffs for imported galvanized steel. Tariffs, in-place since 1993, raise the price of foreign galvanized steel by 30 % which has resulted in high costs to customers who buy everything that makes use of steel.
Neither automakers nor customers should be victimized of retiree benefits of domestic steel makers. Emphasis should be on enforcing free & fair trade practices. US steel makers have recovered quite well in past few years since they had changed their business strategies. Consolidation in steel industry, technological innovations, lesser workforce & imposed tariffs on foreign steel has put US steel industry on the right track.
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