Steel receives little sympathy in embarrassing US presidential debate

The debate between the two oldest candidates ever to compete for the office deviated far from the moderator’s prepared questions, but the word “steel” was mentioned only once.

“But did you notice? (Biden) never lifted my tariffs because we bring so much money into the country with the tariffs I put on China,” Trump said while reportedly answering a question about the opioid crisis. “He never lifted them. He can’t because it’s too much money. It’s enormous. And we saved our steel industry. And there should have been more, but he didn’t.”

Trade tariffs

The reference to Section 232 tariffs imposed in 2017 was the only mention of the steel industry. The manufacturing industry in general was mentioned by Biden in connection with new semiconductor chip factories – in response to a question about concerns about his age.

“As I said, 50 million new jobs, 800,000 manufacturing jobs, more investment in America, over millions – billions – of dollars in private investment and companies that we’re growing,” he said in a quavering voice that was widely commented on. “We – by the way – got a whole lot of people on the idea of ​​computer chips. We used to have 40% of the market. We invented those chips. And we lost it because (Trump) sent people overseas to find the cheapest jobs and bring a product home.”

Biden actually maintained existing tariffs on Chinese-origin goods that the Trump administration imposed in 2018 and even increased Section 301 tariffs on Chinese imports in May, including steel and aluminum, electric vehicles, semiconductors and advanced batteries.

According to the Biden administration, the move is intended to counteract China’s “unfair” trade practices.

The tariff rate on certain steel and aluminum products under Section 301 will increase from 0-7.5% to 25% in 2024, while the tariff rate on electric vehicles under Section 301 will increase from 25% to 100%.

Both candidates blamed the coronavirus pandemic for the high inflation rates plaguing the economy.

Biden said that when he became president in 2020, the economy was in “free fall” because of the Trump administration’s handling of Covid-19.

“We have put things right again,” Biden said.

Trump blamed the pandemic for disrupting “the best economy in the history of our country” – a statement the former president often repeated.

“We were hit by Covid, and when it hit us, we spent the money we needed to, so we were spared the Great Depression,” Trump said.

High interest rates have forced smaller service centers to stop purchasing at normal levels as the cost of storing metal has increased, Cleveland-Cliffs CEO Lourenco Goncalves pointed out in a recent public appearance.

For example, the construction industry is suffering from high interest rates, which mean that many projects are getting off the ground slowly.

A steely reaction

Few of the steel executives interviewed by Fastmarkets after the debate were satisfied with the performance of either candidate. Trump’s falsehoods and Biden’s weak performance sparked a general feeling of antipathy between the two candidates. Few said they sat through the entire debate.

“I watched most of the debate and came to the conclusion that we are a disgrace in the eyes of the world,” said one service center manager. “It’s a shame the show couldn’t be shortened to mitigate the embarrassment that President Joe brought upon himself… In short, we should be a lot wiser in November.”

Another source on the buyer’s side said he and his wife quickly decided to look at something else.

“It’s hard to believe that of the millions of qualified American citizens, he is the best candidate to run for the highest office in the land,” he said.

A second employee of a service center gave a devastating assessment of the performance of both candidates in the debate.

“Well, if you’re the kind of person who sometimes looks like he’s having trouble remembering his own name, I can’t imagine you’re suited to the steel industry or any other industry for that matter,” said the second service center source, adding, “The alternative doesn’t exactly make me feel good either.”

One automotive industry executive complained that steel was “mentioned only once and then passed over very quickly and without sufficient discussion.”

“I firmly believe that Trump’s victory will lead to a doubling of tariffs and other countries will respond with their own measures,” said the auto executive. “The age of globalization is indeed over. Now we are faced with recurring conflicts of objectives between politics and corresponding countermeasures. The US steel industry is likely to receive quite a lot of support from both candidates, but probably more from Trump than from Biden.”

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