The United States and the European Union are reporting to consider levying new tariffs on Chinese steel and aluminum, but the consulting company MBMG Group believes that this will exacerbate the problem of inflation in the United States.
According to Bloomberg News on Tuesday (December 6), Paul Gambles, managing director of MBMG Group, said in an interview with Bloomberg News that the US policy may not only exacerbate inflation, but also exacerbate inflation.It is a triple blow to destroying global trade and of course to improve Sino -US relations.
The United States and the European Union are considering new tariffs on Chinese steel and aluminum as part of the measures to reduce carbon emissions and respond to excess global capacity.However, the idea of this internally in the Biden government is still in the initial stage and has not been officially proposed.
This idea of President Biden may have a huge impact on the steel market, especially in the European Union.After the EU invaded Ukraine in Russia, it has always rely on China's smelter to fill the gap in production.This dependence has exacerbated the risk of inflation that can be reduced by reducing supply or increasing tariffs based on climate targets.
China has always been the world's largest iron and aluminum producer, but the Seventh Kingdom Group criticized that China is drowning the world market, harming the interests of other iron and aluminum suppliers, and exacerbating the problem of environmental pollution.
China's steel exports reached a peak of 112 million tons in 2015, but only a small part of it was imported to the United States and the European Union.According to the data of the research company MYSTEEL, under the protective trade measures, China's exports to the United States in 2021 fell to less than 1 million tons, accounting for only 1.3%of the total exports of China alloy.
