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How One Tariff Rewrote Global Steel Trade
Description
In 2018, the US imposed a 25% tariff on steel imports under Section 232 of the Trade Expansion Act of 1962, citing national security. The move triggered a cascade of retaliation, WTO disputes, and a fundamental reshaping of global steel flows. This episode drills into the specific case of how that single tariff shifted production from China and Europe to Southeast Asia, created new trade patterns, and ultimately led to the USMCA's auto rules of origin. Lucas and Luna examine the numbers: US steel imports fell 30% in the first year, but steel prices rose 40%, hitting downstream industries. They also discuss how the tariff accelerated de-globalization in the steel sector, with countries like Vietnam and India becoming new hubs. Plus, a look at the WTO dispute that ruled against the US in 2022, and what it means for future trade policy.