Trade Cases
April 18, 2019
CRU: Quotas Would Only Add to the Volatility
Written by Tim Triplett
Steel interests in North America and the rest of the world are watching intently to see if the Trump administration grants some tariff relief to Canada and Mexico to clear the way for final approval of the new U.S.-Canada-Mexico Trade Agreement. One possible compromise being discussed (albeit one so far opposed by the U.S. trading partners) is replacing the 25 percent Section 232 tariffs on steel with some form of quota.
Speaking during a webinar hosted by CRU and the CME Group earlier today, CRU Principal Analyst Josh Spoores said quotas may help secure the trade agreement, but will only add to the price volatility plaguing the hot rolled market.
