The United States' Section 232 tariffs will likely be replaced by quotas before ratification of the US-Mexico-Canada (USMCA) agreement, Steel Dynamics Inc (SDI) president and chief executive officer Mark D. Millett said.
"We anticipate reciprocal [Section] 232 tariffs between the US, Canada and Mexico will be replaced by alternative, effective quota-based programs among the USMCA countries prior to ratification of the agreement later this year," he told analysts during the company's first-quarter earnings call on Monday April 22.
SDI executives previously indicated that US quotas could be a better way to control steel imports amid an overcapacity crisis that continues to weigh on the global steel industry.
"Furthermore, the actions taken by the US federal government have developed a healthy domestic steel environment and should provide sustainable, long-term support for the US manufacturing base," Millett said, praising the President Donald Trump administration's trade policy. "We believe North American steel consumption will continue to see a steady increase."
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