Now, six months later, the tariffs that President Donald Trump has imposed on US imports of the metal threaten the livelihood of 1.4 million workers in Latin America.
The United States imports 25 million tons of steel each year, and Canada is it main supplier, followed by Brazil and Mexico, each with products tailored to other industries like car manufacturing and construction.
With the world awash steel production overcapacity, and China the main offender, the Trump tariffs will distort the market.
To explain the threat he gives these figures: in 2000 China exported less than 100,000 tons of steel a year to Latin America, but today it is more than 14 million tons. The growth is exponential.
And now, due to the Trump tariffs Latin American producers will not only lose market share in the United States but also miss out in some markets of their own region due to Chinese competition.
The numbers are jarring. China accounts for more than 45 percent of the world's steel production capacity and produces 140 million tons it does not need.
“The main problem of our region, and that of the United States, is world steel overcapacity,“ Tavernelli told AFP.
In September of last year Chile endured what Tavernelli is talking about. Its Huachipato steelworks, the country's largest, shut down its blast furnaces for good.
Alacero argues that regionalization of supply chains -- for instance, US steel producers, car makers and construction companies buy Latin American steel -- “is the best way to defend against disloyal business by China and countries of Southeast Asia.”
Brazil and Mexico are negotiating with the United States to try to win exemptions from the US tariffs, and managed to pull this off during Trump's first term in power.
So there is the risk that more long-standing firms like Huachipato will have to shut down, said Tavernelli, who insisted the countries of Latin America have to work together.
Read More Details
Finally We wish PressBee provided you with enough information of ( Trump tariffs threaten Latin American steel industry )
Also on site :