Trump reduces steel tariffs on Turkey

US president Donald Trump today reduced by half the steel tariffs on Turkey, to 25pc, after saying that the five-day ceasefire in northern Syria had held "very well."

Trump said a ceasefire deal he brokered between Turkey and Syrian Democratic Forces (SDF) led by Kurdish militias would become permanent. On 14 October Trump increased the tariff on Turkish steel from 25pc to 50pc as part of a pressure campaign against the country as it launched a broad offensive into northern Syria against the SDF forces that had been allied with the US. Under the ceasefire, the SDF is supposed to pull out of a 30km buffer zone along the northern Syrian border with Turkey.

Other economic sanctions put on Turkey will also be lifted.

Trump said he could reimpose tariffs and sanctions on Turkey if it does not honor its obligations to protect religious and ethnic minorities.

"We reserve the right to reimpose crippling sanctions including substantially increased tariffs on steel and all other products coming out of Turkey," Trump said.

The office of the United States Trade Representative never formally issued a notice of the tariff increase through the Federal Register, a procedural step required to implement the increased tariffs.

Market reaction to the temporary rise in the Turkish steel tariff was muted.

The Argus daily Turkey rebar assessment dropped by $2.50/t in the immediate aftermath of the tariff hike, but rebounded to $407.50/t fob as of yesterday, back to levels last seen on 11 October.

Similarly, Turkish ferrous scrap prices shrugged off the news, climbing by $7.70/t from 14 October to $244/t cfr for HMS 1/2 80:20 yesterday.

source: Argus Media