Since Donald Trump took office in 2017, he has caused a great amount of debate in the United States – and all over the world.
While Britain has largely been unaffected by the arbitrary policies and reversal of the Obama years, there has been one aspect that has even the strongest UK Trump support concerned: his trade tariffs. Trump’s election pledge to the rustbelt was to return the steel industry to what it once was. But as steel exporters in the UK – including Warrington, an exporter of galvanised steel wire – know, this could impact business here in the UK. But how will Trump’s trade tariffs affect Warrington?
The wave of protectionism that ignited tensions and brought upon Trump’s tariffs on its major imports has led to another trade war of sorts, as a timeline of Trade Wars in the 20th and 21st century shows. While this has affected many industries for the many imports that the US relies upon, the 25% tariff on steel has changed the global industry, affecting steel production worldwide, excluding the countries who have successfully lobbied for exemptions – Australia, Argentina, Brazil, and South Korea. As the UK exports £360m of steel every year to the USA, making up 15 percent of its steel exports, steel manufacturers in the UK should be concerned.
International Trade Secretary Liam Fox opined that the move was “absurd” considering the special relationship the UK and US were attempting to continue to cultivate. Indeed, while Australia managed an exemption due to their unique treatment of their steel, the UK also produces steel that the US would find difficult to replicate. Understanding how well the steel industry in America is doing regardless of the tariffs can be provided by looking at the Dow Jones, which monitors equity performance in the USA as a whole. Studying this index can help identify whether the tariffs have actually made a difference to the economic progress of a company. However, this is a quantitative measure and doesn’t consider more qualitative indices.
Source: Pixabay
The trade wars as they stand are more cold than hot outright, and the UK is still dealing with its own issues of trade. In short, tariffs from the US not only add an extra element to the Brexit negotiations, but also outline how the UK will look trade-wise in the months to come. A healthy economy inspires more need for steel and steel wire, so the more people build, the greater the need for the steel industry. Promoting a healthy economy should be the government’s main concern in order to prevent a fully-fledged trade war.
While the tariffs have been in place for some months now, the financial situation of the steel industry cannot fully be analysed or comprehended at present. Trump’s tariffs would definitely be enough to rock the boat for some firms, but the steel industry looks to hold tight. The industrial revolution brought steel wire making to Warrington and the decades since have helped diversify its offering. Whether the tariffs are dropped or continue to rise, the city will continue to flourish.
