BIMCO: Trade Battle Will Damage Global Shipping Industry

- Mar 29, 2018-

BIMCO said that the United States recently announced the imposition of tariffs on imported steel and aluminum, which may trigger a potential trade war that will damage the global shipping industry.

 

Although the impact of the US imposed steel and aluminum tariffs (disclosed on March 1 and planned to enter into force on March 23, 2018) is still unclear, the current major trade moves against China may also come from the United States.butt welding pipe fitting

 

Since the import barriers for steel and aluminum are set by the United States, trading partners such as the EU, Japan, and China may set import barriers for political retribution against US agricultural products.

Peter Sand, chief shipping analyst at BIMCO, said: "All trade restrictions are in principle not good for the shipping industry."

 

“Economy opening is better in terms of trade because people can allocate resources optimally. The result of the trade war is higher prices, lower quality, and fewer varieties, which apply to all products and commodities.”

According to the US President Trump's collection tariff plan, the United States will impose a 25% tariff on steel imports and a 10% tariff on aluminum imports.butt welding elbow

 

The atmosphere of international trade is full of threats and revenge. The major trading partners of the United States, the European Union and China, are likely to fight back and draw a line for the U.S. government.

The World Trade Organization stated that since 2009, the implementation of trade restrictions among global trading partners has become more common.

 

The African Continental Free Trade Area (ACFTA) proved to be the newest one of its kind. The leaders of 44 African countries reached one of the world's largest free trade agreements on March 21st to eliminate trade barriers and allow free movement of goods and services among member countries. forging flange

 

"Overall, we are pushing for more trade restrictions. Some are more eye-catching than others. This is a worrying trend that limits global shipping demand."

 

Sand concluded: "For the shipping industry, what is even worse is the short-sighted political stance. If a large-scale trade war breaks out, it may have a lasting impact on shipping and other global industries."