Colombian industries that generate hundreds of jobs and export millions of dollars to USA They could also be affected by the announcement made by the president Donald Trump about imposing up to 25 percent of duty to all Steel and aluminum imports.
In particular, in the case of products made with this last metal and that already had a market of more than 20 million dollars annually.
According to Enrique Millán, representative of Colombia in Washington during the governments of Juan Manuel Santos and Iván Duque, the expectation is high, since nOr it is known if the announced tariffs would be additional to existing rates or only for the countries that did not have them.
At the moment, Colombia already has a 25 percent tariff for steel and 10 percent in the case of aluminumwhich were imposed during Trump’s first mandate between 2017 and 2021.
What we do not know now is whether this new 25 percent general will be imposed on the existing rate or only against countries that did not pay tariff. If it is on existing rates that would imply a 50 percent tariff of the steel and 25 or 35 percent on aluminum. If this were the case it would be deadly for the industry, they would lose competitiveness
Donald Trump. Photo:EFE.
As remembered, at the beginning of his first administration, Trump also announced tariffs for these same sectors (25 for steel and 10 for aluminum) because, in his opinion, the national company was affected since many countries (companies) They bought metals at lower cost in China to make products that then triangulated to the United States.
These tariffs were eliminated in some cases after a negotiation process in which fees were determined for imports with countries such as Mexico, Canada, Brazil, Argentina and the European Union.
Colombia, however, could never eliminate the tariff, which practically ended steel -based exports. In the case of aluminum, although 10 percent was maintained, a mechanism was established for a company to certify that its products were not being triangulated from China, which benefited some how many, such as Tecnoglass.
In other circumstances, companies were able to fit 10 percent of the tariff, as they had margin and solid customers in Florida, Puerto Rico and others where they remained competitive.
“What we do not know now is whether this new 25 percent general will be imposed on the existing rate or only against countries that did not pay tariff. If it is on existing rates that would imply a 50 percent tariff of the steel and 25 or 35 percent on aluminum. If this were the case it would be deadly for the industry, they would lose competitiveness, ”says Millán and with the Millán and Ayala consulting firm.
Tecnoglass Photo:Tecnoglass
How could Donald Trump implement these steel and aluminum tariffs?
If you leave the IEEPA route the consequences would be immediate.
In any case, and since there are already tariffs imposed on most countries of the world in these two sectors, the expectation is that they will fall on those that had already been excluded, that is, Mexico, Canada, the European Union, Brazil and Argentina inter alia.
In 2017, for example, the governments of Jair Bolsonaro and Mauricio Macri, Trump’s ideological allies managed to be excluded from the tariff.
Exports. Photo:Getty Images/Istockphoto
Something similar could now achieve President Javier Milei, close to the Republican president, but maybe not Lula da Silva.
Nor is it clear if Trump’s final objective, when using tariffs, is to force a negotiation to obtain concessions on other fronts.
The Republican president also announced that, if any country imposes tariffs in retaliation, it will impose a reciprocal tariff that, in some way, is the materialization of the so -called “commercial war” that many fear.
Serious Gómez Maseri
El Tiempo correspondent
WASHINGTON
(Tagstotranslate) United States
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