Tariffs on Steel Imports Could Hike Prices for Consumers
Vertical linkages between different types of flat rolled steel in the U.S. market were studied to understand how trade restrictions impact imports. By using a specialized model, researchers found that when trade restrictions are imposed, demand for raw materials increases, while supply of finished products decreases. This leads to higher prices for both raw materials and finished products, as well as changes in shipments. The impact of trade restrictions is most significant on domestically produced slab, affecting downstream products made from it.