Empirical Data
Total U.S. steel imports from Taiwan increased from $133,446,203 in 1989 to $353,458,689 in 2001. This represents an increase of 164.87%. The percentage change in imports of individual categories over the same period ranged from -76.14% for Pig Iron and Iron & Steel Powder (SITC 671) to +53897% for Alloy Steel Flat-Roll Products (SITC 675). There is a particularly large spike in imports of Iron & Non-alloy Steel Flat-Roll Products (SITC Code 673) between 1999 and 2001, peaking in 2000. There are similar, but smaller spikes in other categories between in the same time period, including SITC Codes 679, 675, 676 and 674. These spikes are most likely related to the surge in the U.S. economy, which ended in 2000, and the subsequent recession, which began in Fall 2000 and ended in Fall 2001. It is not likely that the dramatic increase in imports in these categories was the result of stockpiling in anticipation of the future tariffs because President George W. Bush was not inaugurated as President until January 2001, thus President Clinton's economic policies would still have been in effect in 2000.It can also be seen that U.S. imports of Taiwanese-produced steel begins to decline in 2001, before the imposition of the March 2002 tariffs. Francois and Baughman (2003) mention several reasons for this. First, between September and December 2001, many countervailing and anti-dumping duties went into effect for imports of hot-rolled carbon steel flat products (SITC Code 675) from 11 countries (Francois and Baughman, 2003). Second, LTV Steel, one of the U.S.'s largest steel producers, left the market in the second half of 2001. As a result, U.S. steel production decreased by almost 20% from October to December 2001 (Francois and Baughman, 2003). While this might imply that steel imports would increase to compensate for the decreased domestic production, the countervailing and anti-dumping duties in effect at the same time likely prevented this from occurring. Total U.S. steel exports decreased from $79,045,455 in 1989 to $52,201,962 in 2001. This represents a 33.96% decrease. The percentage change in exports of individual categories over the same period ranged from -98.78% for Iron and Non-Alloy Steel Flat-Roll Products (SITC 673) to 5145% for Iron and Steel Rails & Railway Track Construction Material (SITC 677). This decline is probably the result of the continuing inefficiency of U.S. steel producers, which makes them unable to compete with Taiwanese and other foreign steel producers.
Effective March 20th, 2002, the U.S. imposed additional tariffs on the following products: Tin mill steel (30%), Flat steel products including cold-rolled, plate-rolled and coated sheet steel (30%) corresponding to SITC codes 673 and 674, Hot-rolled bar and cold-finished bar (30%) corresponding to SITC code 676, Carbon and alloy fitting and flanges (used in car production, 13%), Stainless (steel) rod (15%) included in SITC code 676, Rebar (used in construction, 15%) corresponding to SITC code 677, Slab steel (30% after the first 5.4 million tons are imported) corresponding to SITC code 672. At the same time, countervailing and anti-dumping duties were imposed on stainless steel bar imports (SITC Code 675) from five nations in addition to the other tariffs.
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