New Tariffs May Pose Problem for Steel Dynamics
COLUMBUS — Courtesy of The Dispatch
The Trump Administration recently announced that its 25% tariffs on steel – which had exempted the EU, Canada, and Mexico – will now be imposed unilaterally, triggering Mexico to retaliate in kind. Some are concerned that this could be bad news for Golden Triangle businesses, such as Steel Dynamics.
Mark Millet, CEO of SDI
During a January 2018 conference call, SDI President and CEO Mark Millett pointed out the Columbus flat-roll steel plant’s stellar role in boosting the company’s profits to record highs: “We, I think, shipped about 220,000 tons of automotive (steel) from Columbus just last year, which is a massive increase,” Millett told investors. “And we’re on platforms to increase that to about 400,000 tons over the next 18 months …We continue to gain market share, especially at the Columbus flat roll division with our focus on automotive direct sales. We also benefit there from a cost effective access into Mexico.”
Much of the local plant’s steel is exported to Mexican auto manufacturing plants. They imported roughly 3.7 metric tons of flat roll steel, according to the International Trade Assn.; this number made up about 2/3 of Mexico’s total steel imports that year.