President Trump is famous for making controversial decisions, and one of these decisions is a tariff on steel. Nearly 16 months ago, Trump decided to raise taxes on steel, and since that day, the steel industry hasn’t performed better. A recent report shows that the steel industry has lost more than $5.5 billion or nearly 70% of its total market value plus companies like Nucor Corp and US Steel Corp has lost billions of dollars because of tariffs. While some experts are sceptical about the situation of US Steel in future.
Meanwhile recently Nucor CEO John Ferriola said that there are some companies which are going to suffer because of this tariff issue but at what capacity we will have to see that in future. He seemed to be quite sure that the steel industry is going through some significant lousy phase because of Trump’s decision of putting taxes, which has idled two American furnaces in mid-June.
Trump a few months ago said that under his government steel industry is going to see some evolution and the changes which they are making will bring results. But, so far stronger steel makers have found to increase their capacity while demand for it has slowed down. 2018 was according to steel expert best year because in that year Trump cut down the taxes on steel. However, since the situation has changed a lot because now the demand for steel has slowed down. The main problem which steelmakers are facing here is the raised amount of taxes because not so many companies are in a sound financial situation to pay it. US steel companies are trying to convince its investors that they can still change the current situation, but if Trump continues with his tariffs move them, it would be hard for them to cope with it.