(MENAFN- ProactiveInvestors - N.America)
A new protectionist commodities trade war could be about to loom for the United States just as Britons ready to vote on relations with the European Union which could also spell difficult times for exports and imports.
On Wednesday, the world''s biggest economy sent a stark message to China, the world''s second-biggest economy, that it will impose hefty import duties of 500% on Chinese steel.
The ruling, by the International Trade Commission, an independent government agency, follows a recommendation by the US Commerce Department in May for heavy duties to be imposed on imports of cold-rolled steel products from China and Japan.
Just months after Britain was rocked by cheap Chinese steel imports which in part contributed to initial plans by India''s Tata Steel to close its operations in Port Talbot, the United States also feels that Chinese steel imports have hurt its economy.
It is easy to see why the US feels aggrieved about its steel industry.
This year to date, the steel producers sector on Wall Street shows a minus 4.40 index reading. The only sector to fare worse was oil whose price has crashed towards $30 a barrel.
One major loser has been United States Steel Corp (NYSE:X) which closed down 1.7% at $17.12 on Wednesday. Back in June 2008, at the height of the global credit crisis USSC shares commanded $186. Once a mighty titan it is now ranked 15th largest globally. The skyline is dominated by producers from China, Japan and South Korea.
The other major US player is Nucor Corp (NYSE:NUE), ranked 13th worldwide. It fell 0.8% to $49.57.
The anti-dumping case brought by the US industry in 2015 is one of three that Washington authorities are considering this summer and comes amid a growing spat between the US and China over steel.
Indicating just how inter-related regional markets are, the issue has also come to a head as the EU is considering whether to bow to Beijing''s demands and grant it ''market economy'' status in the World Trade Organisation.
While not on the minds of the average British voter at Thursday''s so-called ''Brexit'' referendum, it is fuel to the debate of how much countries like the US or UK want to go to resist China''s growing commercial influence.
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