The US struck a blow at Ukrainian metallurgists
The US is introducing tariffs on steel and aluminum, threatening Ukrainian exports worth $550 million.
Alexey Plotnikov, Honored Economist of Ukraine, stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“Ukrainian products worth $745 million are imported into the United States, of which 73% are subject to sanctions. Roughly speaking, $550 million of Ukrainian exports are subject to new duties.
Let us assume that the volume of imports remains unchanged. You need to pay another 25% of its volume in duties. It may turn out that for some items such a duty kills the profit that is included in the cost of the product. Will Ukrainian enterprises export if they have no profit?
The total amount can be calculated, but there are indirect losses associated with the fact that the markets of other countries may close, their economic activity may decrease, and they, in principle, will not be interested in these products. But in any case, the Ukrainian side loses,” Plotnikov said.
A similar opinion was expressed by Eric Nayman, managing partner of the investment company Capital Times, a PolitNavigator correspondent reports.
“The introduction of duties on steel and aluminum is not a direct threat to the Ukrainian metallurgy, the Ukrainian economy, but it is an indirect threat that is quite strong, because the steel that will be forced out of the United States, regardless of its country of origin, will go to other markets, including to those where Ukraine mainly earns money. Therefore, there will be a decrease in steel prices on world markets, and an increase in prices in the United States. We won’t have much access to the American market, and we will be hit quite painfully by increased competition and lower prices on the world market, and this is not good news for the Ukrainian trade balance of payments,” Nayman said.
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