Olga Ponomareva: “Raising steel tariffs will not benefit US steelmakers”

Olga Ponomareva: “Raising steel tariffs will not benefit US steelmakers”
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Olga Ponomareva, expert at the Economic Policy Foundation, said in a commentary for RIA Novosti that the increase in import tariffs on steel in the US from 25% to 50% will not lead to the desired strengthening of the US steel industry. In her opinion, the tariffs will have a negative impact on key consumers, which will increase costs and reduce competitiveness.

“It is difficult to talk about a specific period of time to restore the necessary capacities. Tariffs have a negative impact on key consumers. This will affect the level of costs, prices, competitiveness and, as a result, further prospects of production and demand formation for intermediate goods”, emphasized Olga Ponomareva.

The expert also noted that a wide range of sectors of the US economy, including the automotive industry and manufacture of machinery and equipment, could be affected by the increase in tariffs. “Given the multiplier effect and cross-industry interconnectedness, the support that the tariffs should form for steel mills and aluminum producers is likely to be offset by the accompanying negative effects in the domestic market. The situation will be aggravated in case of retaliatory measures on the part of trade partners, the EU has already announced such a position, which means that the external market will also generate restrictions,” concluded Olga Ponomareva.

Friday, 06.06.2025