The reduction by the US of Section 232 tariff on Turkish steel to 25% will not see Turkish exports to the US return to previous tonnages, according to the Turkish Steel Exporters’ Association (CIB). It does however see this as a positive development, the CIB says.

Besides reducing the tariff on Turkish steel on 17 May, the US also removed tariffs on steel imports from Canada and Mexico as the three nations agreed a trade deal to replace NAFTA.

Before the tariffs imposed on steel imports by President Donald Trump last year, Turkey was the sixth largest importer for the country, while Canada and Mexico were the first and the fourth respectively. This suggests that the latest round of tariff relaxation will benefit the two North American partners before it will impact Turkey.

In addition, CIB president Adnan Aslan says that since Turkey was shut out of the US market by a doubling of the 232 tariff to 50% last August, US steelmakers have increased their share of the domestic market. Their capacity utilisation has risen by 10% and US steel imports have fallen -48%. Moreover, new suppliers, such as Qatar, Saudi Arabia and Algeria, have entered the US market.

Therefore, “… reducing the 50% additional customs duty applied to Turkish steel products to 25% does not mean that our sector can export to the US as before,” Aslan says. “The US market now is not what we left behind. It will not be easy to reach our old market share and realise the old export figures.”

Moreover, the removal of tariff on Canadian and Mexican steel will give these two countries a serious competitive advantage over Turkey. “For this reason we do not expect this decision to make up for the loss of our sector in the US market,” Aslan concludes.