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The trade war triggered by the United States will damage the global shipping industry

  • Author:Cynthia
  • Release Date:2018-04-03
  according toUnited StatesAccording to data from the National Retail Federation (NRF), the new tariffs imposed by the United States on imported steel and aluminum last week may trigger an international trade war, damage the shipping industry, and have a long-term negative impact on container imports.

The Baltic International Shipping Association (BIMCO) stated that this may trigger a potential trade war and will harm the global shipping industry.

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."

“Economic 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.

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.

"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."

Ben Hackett, founder of Hexter Marine Strategy and Trade Logistics Consulting, said that potential trade wars will have a negative impact on freight growth and damage consumers and U.S. industry.

“The possibility of an increase in exports will also disappear, thereby eliminating any chance of improving trade balance,” he added.

Peter 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 global industries such as shipping."