Steel and lumber prices are sky-high. Lifting Trump's tariffs could help - CNN - 0 views
-
The US economy is so hot the supply of key materials can't keep up with surging demand — sparking shortages and price spikes in everything from computer chips and copper to chlorine.
-
This choice underscores the challenging position Biden finds himself in. Despite what his critics may say, he doesn't have a magic wand to immediately stabilize prices. And some of the issues can be attributed to the unique nature of the crisis: a self-imposed shutdown of the economy followed by an intense rebound.
-
Trump's lumber and steel tariffs, introduced in 2017 and 2018 respectively, were aimed at protecting American industry and jobs against alleged unfair trade tactics — and the steel industry says they've been essential to keeping the sector afloat during the pandemic. But the logic of the tariffs is being undermined by not only supply shortages but also breathtaking price spikes.Read More
- ...7 more annotations...
-
Despite a 20% pullback in recent weeks, random-length lumber futures are still up more than 400% from their April 2020 low. Lumber prices have skyrocketed so much that it's causing remodeling nightmares and creating even more sticker shock in the booming housing market.
-
Likewise, prices for US hot-rolled, coil steel, the most widely produced finished steel product, have spiked almost 270% since bottoming out last August and hit a record high of $1,616 per ton on Friday, according to S&P Global Platts. Before this boom, the prior peak was $1,100 in 2008.
-
Murphy, whose organization opposed the Section 232 steel tariffs from the beginning, argued tariff relief is a way government can help accelerate the recovery while simultaneously easing inflation jitters.
-
Meanwhile, both the steel and lumber industries are strongly urging Biden to keep the tariffs in place. Removing them could prove to be politically unpopular, especially among steel workers in battleground Rust Belt states.
-
Scott argued the steel tariffs effectively supported the industry and that removing them, along with quotas limiting imports, would lead to both a "hemorrhaging of jobs" and importing steel that is in many cases worse for the environment than what is made in America.
-
The Biden administration does not appear to have made a decision yet on lifting the steel or lumber tariffs, though new efforts are being made to address rising inflation concerns.
-
Biden announced late last week his administration will soon take unspecified steps to fight supply chain pressures, beginning with construction materials and transportation bottlenecks.