UAE-based steel producers expect to escape major impact from the latest move by the US to double tariffs on steel imports.
US President Donald Trump has raised import duties on steel and aluminium imports to 50 per cent, from 25 per cent previously, starting on Wednesday, the White House said.
The new tariffs apply to all trading partners except the UK, which struck a preliminary trade agreement with the US last month.
However, steel manufacturers in the UAE don't anticipate a hard hit.
The US decision to double steel import tariffs "may have an indirect effect on market dynamics but is not expected to materially impact Emsteel's business", Michael Rion, chief commercial officer at Emirates Steel, part of Abu Dhabi listed Emsteel Group told The National.
The company has a "modest exposure" to the US market, with exports accounting for less than 2 per cent of total annual sales, he said.
"Given this proportion, the financial and operational impact of the new tariff regime is considered minimal.
"Our current US business model is opportunistic and margin-driven, not volume-dependent."
The company currently exports steel products to 70 markets around the globe.
"Our strategic commercial shift has been toward high-growth regional markets, notably the UAE, wider GCC, India, and North Africa, where demand fundamentals are more robust and aligned with our delivery capabilities."
Meanwhile, UAE-based steel products manufacturer Conares said it is diversifying its export markets across Asia, Africa and Europe.
"With the US potentially becoming less accessible, we foresee increased demand and strategic opportunities within the GCC and Mena regions," said Bharat Bhatia, founder and chief executive of Conares.
The company is also "actively strengthening its domestic footprint to meet infrastructure and construction growth locally", he said.
Conares has large steel plants in Jebel Ali Free Zone with an annual production capacity of 10 million tonnes of steel products including rebars, pipes, and color-coated steel coils, strips and plates.
At present, the US accounts for the third largest export market for steel for Gulf producers, said Matthew Watkins, principal analyst at CRU Group.
"From the GCC side, the US represents about 6 per cent of its total extra-regional export volumes of steel. Although this is a small number it does make the US the GCC’s third-largest export market, behind China and the EU," he said.
"A potential reduction in access to that market would therefore not be painless for GCC producers. But they would probably be able to find alternate markets if necessary."
Trade protectionist policy
The latest move comes as the Trump administration continues with its trade protectionist policy.
“Foreign nations have been flooding the US market with cheap steel and aluminium subsidised by their governments," the White House said on Tuesday.
“President Trump is taking action to end unfair trade practices and the global dumping of steel and aluminium."
The White House said Mr Trump’s tariffs in his first terms as President “strengthened the US economy,” and “led to significant reshoring” in industries like manufacturing and steel production.
Mr Trump implemented tariffs of 25 per cent on steel and 10 per cent on aluminium in 2018, citing national security.
“While the domestic steel industry briefly achieved 80 per cent capacity utilisation in 2021, subsequent trade pressure has depressed domestic production," it said.
In 2022 and 2023, capacity utilisation fell to 77.3 per cent and 75.3 per cent, respectively, with high import volumes being a "major factor in depressing domestic production volumes".
While Mr Trump announced sweeping tariffs across industries and nations two months back, Washington is currently holding talks to reach an agreement on lowering levies.
On May 12, the White House announced that China and the US struck a deal to suspend their tariffs for 90 days. Washington and Beijing lowered their levies to 30 per cent and 10 per cent, respectively from an initial announcement of 145 per cent and 125 per cent in April.
US consumers to pay higher prices
The US will have to continue to import steel to meet its requirements despite the new tariffs introduced by Mr Trump, Mr Watkins said.
"The US is a net importer of steel to meet its demand and despite the escalation in import tariffs that position will not change in 2025," he said.
"Some prior investments in new US capacity are due to start up and some idled capacity can be reactivated, but even with these the US is still going to need to import steel this year."
With the latest tariffs, the cost of importing steel has increased further and this will lead to significantly higher prices for end consumers in the US market, he said.
Mexico and Canada currently dominate steel exports to the US market, with a market share of more than 40 per cent combined. The Gulf currently accounts for 1 per cent of US steel imports.
Killing of Qassem Suleimani
WHAT%20MACRO%20FACTORS%20ARE%20IMPACTING%20META%20TECH%20MARKETS%3F
%3Cp%3E%E2%80%A2%20Looming%20global%20slowdown%20and%20recession%20in%20key%20economies%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Russia-Ukraine%20war%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Interest%20rate%20hikes%20and%20the%20rising%20cost%20of%20debt%20servicing%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Oil%20price%20volatility%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Persisting%20inflationary%20pressures%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Exchange%20rate%20fluctuations%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20Shortage%20of%20labour%2Fskills%3C%2Fp%3E%0A%3Cp%3E%E2%80%A2%20A%20resurgence%20of%20Covid%3F%3C%2Fp%3E%0A
Zayed Sustainability Prize
Why does a queen bee feast only on royal jelly?
Some facts about bees:
The queen bee eats only royal jelly, an extraordinary food created by worker bees so she lives much longer
The life cycle of a worker bee is from 40-60 days
A queen bee lives for 3-5 years
This allows her to lay millions of eggs and allows the continuity of the bee colony
About 20,000 honey bees and one queen populate each hive
Honey is packed with vital vitamins, minerals, enzymes, water and anti-oxidants.
Apart from honey, five other products are royal jelly, the special food bees feed their queen
Pollen is their protein source, a super food that is nutritious, rich in amino acids
Beewax is used to construct the combs. Due to its anti-fungal, anti-bacterial elements, it is used in skin treatments
Propolis, a resin-like material produced by bees is used to make hives. It has natural antibiotic qualities so works to sterilize hive, protects from disease, keeps their home free from germs. Also used to treat sores, infection, warts
Bee venom is used by bees to protect themselves. Has anti-inflammatory properties, sometimes used to relieve conditions such as rheumatoid arthritis, nerve and muscle pain
Honey, royal jelly, pollen have health enhancing qualities
The other three products are used for therapeutic purposes
Is beekeeping dangerous?
As long as you deal with bees gently, you will be safe, says Mohammed Al Najeh, who has worked with bees since he was a boy.
“The biggest mistake people make is they panic when they see a bee. They are small but smart creatures. If you move your hand quickly to hit the bees, this is an aggressive action and bees will defend themselves. They can sense the adrenalin in our body. But if we are calm, they are move away.”
Mohammed bin Zayed Majlis
MATCH INFO
Karnatake Tuskers 114-1 (10 ovs)
Charles 57, Amla 47
Bangla Tigers 117-5 (8.5 ovs)
Fletcher 40, Moores 28 no, Lamichhane 2-9
Bangla Tiger win by five wickets
UAE'S%20YOUNG%20GUNS
%3Cp%3E1%20Esha%20Oza%2C%20age%2026%2C%2079%20matches%0D%3Cbr%3E%0D%3Cbr%3E2%20Theertha%20Satish%2C%20age%2020%2C%2066%20matches%0D%3Cbr%3E%0D%3Cbr%3E3%20Khushi%20Sharma%2C%20age%2021%2C%2065%20matches%0D%3Cbr%3E%0D%3Cbr%3E4%20Kavisha%20Kumari%2C%20age%2021%2C%2079%20matches%0D%3Cbr%3E%0D%3Cbr%3E5%20Heena%20Hotchandani%2C%20age%2023%2C%2016%20matches%0D%3Cbr%3E%0D%3Cbr%3E6%20Rinitha%20Rajith%2C%20age%2018%2C%2034%20matches%0D%3Cbr%3E%0D%3Cbr%3E7%20Samaira%20Dharnidharka%2C%20age%2017%2C%2053%20matches%0D%3Cbr%3E%0D%3Cbr%3E8%20Vaishnave%20Mahesh%2C%20age%2017%2C%2068%20matches%0D%3Cbr%3E%0D%3Cbr%3E9%20Lavanya%20Keny%2C%20age%2017%2C%2033%20matches%0D%3Cbr%3E%0D%3Cbr%3E10%20Siya%20Gokhale%2C%20age%2018%2C%2033%20matches%0D%3Cbr%3E%0D%3Cbr%3E11%20Indhuja%20Nandakumar%2C%20age%2018%2C%2046%20matches%3C%2Fp%3E%0A
More from Neighbourhood Watch:
KILLING OF QASSEM SULEIMANI
Killing of Qassem Suleimani
Our Time Has Come
Alyssa Ayres, Oxford University Press
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
More from Neighbourhood Watch
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
Dubai Rugby Sevens
November 30-December 2, at The Sevens, Dubai
Gulf Under 19
Pool A – Abu Dhabi Harlequins, Jumeirah College Tigers, Dubai English Speaking School 1, Gems World Academy
Pool B – British School Al Khubairat, Bahrain Colts, Jumeirah College Lions, Dubai English Speaking School 2
Pool C - Dubai College A, Dubai Sharks, Jumeirah English Speaking School, Al Yasmina
Pool D – Dubai Exiles, Dubai Hurricanes, Al Ain Amblers, Deira International School
UAE currency: the story behind the money in your pockets
More from Neighbourhood Watch:
More from Rashmee Roshan Lall
More on Quran memorisation:
Mohammed bin Zayed Majlis
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
Killing of Qassem Suleimani
Mohammed bin Zayed Majlis
MATCH INFO
France 3
Umtiti (8'), Griezmann (29' pen), Dembele (63')
Italy 1
Bonucci (36')
The five pillars of Islam
The biog
Age: 59
From: Giza Governorate, Egypt
Family: A daughter, two sons and wife
Favourite tree: Ghaf
Runner up favourite tree: Frankincense
Favourite place on Sir Bani Yas Island: “I love all of Sir Bani Yas. Every spot of Sir Bani Yas, I love it.”
Killing of Qassem Suleimani
More on Quran memorisation:
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
Developer: Ubisoft Montreal / Ubisoft Toronto
Publisher: Ubisoft
Platforms: Playstation 4, Xbox One, Windows
Release Date: April 10
The years Ramadan fell in May
RESULT
Arsenal 0 Chelsea 3
Chelsea: Willian (40'), Batshuayi (42', 49')
More on animal trafficking
The five pillars of Islam
More from Neighbourhood Watch:
Miss Granny
Director: Joyce Bernal
Starring: Sarah Geronimo, James Reid, Xian Lim, Nova Villa
3/5
(Tagalog with Eng/Ar subtitles)
Killing of Qassem Suleimani
RESULTS
%3Cp%3E%0D5pm%3A%20Al%20Bateen%20%E2%80%93%20Maiden%20(PA)%20Dh80%2C000%20(Turf)%202%2C200m%0D%3Cbr%3EWinner%3A%20Ma%E2%80%99Aly%20Al%20Shahania%2C%20Bernardo%20Pinheiro%20(jockey)%2C%20Mohamed%20Daggash%20(trainer)%0D%3Cbr%3E5.30pm%3A%20Al%20Khaleej%20%E2%80%93%20Maiden%20(PA)%20Dh80%2C000%20(T)%201%2C400m%0D%3Cbr%3EWinner%3A%20AF%20Rami%2C%20Tadhg%20O%E2%80%99Shea%2C%20Ernst%20Oertel%0D%3Cbr%3E6pm%3A%20Wathba%20Stallions%20Cup%20%E2%80%93%20Handicap%20(PA)%20Dh70%2C000%20(T)%201%2C400m%0D%3Cbr%3EWinner%3A%20Bant%20Al%20Emarat%2C%20Bernardo%20Pinheiro%2C%20Qaiss%20Aboud%0D%3Cbr%3E6.30pm%3A%20Al%20Nahyan%20%E2%80%93%20Handicap%20(PA)%20Dh80%2C000%20(T)%201%2C600m%0D%3Cbr%3EWinner%3A%20AF%20Rasam%2C%20Marcelino%20Rodrigues%2C%20Ernst%20Oertel%0D%3Cbr%3E7pm%3A%20Al%20Karamah%20%E2%80%93%20Handicap%20(PA)%20Dh80%2C000%20(T)%201%2C600m%0D%3Cbr%3EWinner%3A%20Zafaranah%2C%20Bernardo%20Pinheiro%2C%20Musabah%20Al%20Muhairi%0D%3Cbr%3E7.30pm%3A%20Al%20Salam%20%E2%80%93%20Handicap%20(TB)%20Dh80%2C000%20(T)%201%2C400m%0D%3Cbr%3EWinner%3A%20Nibras%20Passion%2C%20Tadhg%20O%E2%80%99Shea%2C%20Ismail%20Mohammed%3C%2Fp%3E%0A
Killing of Qassem Suleimani
TICKETS
For tickets for the two-day Maharlika Pilipinas Basketball League (MPBL) event, entitled Dubai Invasion 2019, on September 27 and 28 go to www.meraticket.com.
