U.S. Commerce Dept Probing Steel 'Profiteering' After Tariffs

[edpc]

(Reuters) - The U.S. Commerce Department is investigating recent steel price hikes to determine whether some market participants are "illegitimately profiteering" from new tariffs, Commerce Secretary Wilbur Ross said on Wednesday.

Ross told a Senate Finance Committee hearing that the price of steel in the U.S. market has risen far more than justified by the 25 percent tariff imposed by the Trump administration, possibly because of "speculative activity," with some market intermediaries holding back inventories.

https://mobile.reuters.com/article/amp/idUSKBN1JG22W

[edpc]

"There's no reason for tariffs to increase the price of steel by far more than the percentage of the tariff, and yet that's what has been happening," Ross said. "That clearly is not a result of the tariff, that's clearly a result of antisocial behavior by participants in the industry."

Ross did not name any parties responsible for the price hikes. But he said the restart of some idled domestic mills would help alleviate any supply constraints by late this year, citing U.S. Steel Corp's restart of its Granite City, Illinois, blast furnace operations, which should add 2.5 million tons of raw steel output annually.


So, he says there's no reason for the increase above 25%, then addresses remedies to supply constraints.  OK.

[corbe]

   Lumber, v2.0

[Formerly Once-Ler]

So, he says there's no reason for the increase above 25%, then addresses remedies to supply constraints.  OK.

I'm uncertain if this propaganda is offered because Ross has contempt for the intelligence of Americans or he is genuinely this dumb.  Probably both.

[edpc]

I'm uncertain if this propaganda is offered because Ross has contempt for the intelligence of Americans or he is genuinely this dumb.  Probably both.

Well, he may end up having his own legal/ethical issues over divestment.

http://www.gopbriefingroom.com/index.php/topic,321126.0.html

[Formerly Once-Ler]

Well, he may end up having his own legal/ethical issues over divestment.

http://www.gopbriefingroom.com/index.php/topic,321126.0.html

The BEST people.

[Fantom]

Meh....  let the Market take care of it.

[edpc]

Meh....  let the Market take care of it.

That's kind of the point.  At first, the implementation of tariffs will put an additional cost of the percentage and also disrupt supply, at least in the short term.  Domestic production may increase, which would bring the prices down.  Once tariffs are in place long enough, unions will renegotiate their contracts and prices will increase again.  We know this, because it's what happened during the Bush 43 steel tariffs.  You'd think as Commerce Secretary and a businessman, Ross would be aware of that.

[Suppressed]

Meh....  let the Market take care of it.

Agreed! 

I'm so glad you're against artificial interference like tarrifs, @Fantom

[txradioguy]

Heard something about this practice last week.  The industries being protected by these tariffs/taxes tend to raise their prices to the consumers on their products to a couple percentage points below the tariff on the imported goods...so they in essence screw the customer again after the custome gets hit by the tariff costs.

Aren't trade wars fun and good for the American public? /s