US Steel Imports & Exports

Canada and China’s Annual $25 Billion Iron and Steel Trade with USA

Feb 3, 2009

These statistics show which BRIC and G7 countries will lose the most if the U.S. doesn't allow imported iron and steel to be used for American infrastructure projects.

US trading partners have good reason to be concerned that Barack Obama’s “Buy American” push will severely reduce global trade in iron and steel.

In general, the American Recovery and Reinvestment Act will prohibit U.S. companies from importing foreign iron and steel for any U.S. infrastructure projects targeted by Barack Obama's $819 billion economic stimulus package.

American Iron and Steel Imports

Developing countries collectively known as BRIC (Brazil, Russia, India and China) exported US$11 billion worth of iron and steel to the United States in 2007.

Over that same period, other G7 member countries (Japan, Germany, UK, France, Italy and Canada) shipped $14.4 billion in iron and steel exports to America.

American Iron and Steel Exports

BRIC countries imported $3.4 billion worth of iron and steel from the U.S. in 2007, which would account for an American $7.6 billion trade deficit based on those commodities alone.

G7 countries imported $10.3 billion in iron and steel materials and products from the U.S. Therefore, America’s trade deficit in iron and steel with its G7 partners is relatively smaller at $700 million.

America’s Iron and Steel Overall Trade Deficit with BRIC and G7

In total, the U.S. exported $13.8 billion worth of the ferrous metals while importing total iron and steel worth $25.5 billion in 2007. America therefore generated a trade deficit of $11.7 billion for iron and steel, principally due to outsourced manufacturing overseas. That ferrous trade deficit could be balanced in the short-run if America can rejuvenate its domestic iron and steel industry as exclusive suppliers to U.S. infrastructure projects.

However, the following statistics show which countries will be most affected should America successfully block imports of iron and steel for upcoming infrastructure projects. These include initiatives to rebuild housing, roads, bridges, airports, water piping and military assets.

Iron and Steel Exports to US by BRIC Country

China shipped well over half of the $11 billion worth of BRIC iron and steel imported into America in 2007.

Iron and Steel Exports to US by G7 Country

Canada sends the most ferrous metal exports into America, half of the G7’s $14.4 billion total exports to the U.S.

Iron and Steel Imports from US by BRIC Country

China consumed over two-thirds of the $3.4 billion worth of U.S. iron and steel exports to BRIC countries in 2007.

Iron and Steel Imports from US by G7 Country

Canada accounts for over 80% of $10.3 billion in G7 iron and steel imports from America.

American Trade Partnership or Trade War?

Under the North America Free Trade Agreement (NAFTA), Canada may be given preferential treatment to partner with its southern neighbor to supply iron and steel used in U.S. infrastructure projects. If not, American protectionism may well trigger a trade war that endangers $40 billion worth of iron and steel in international trade with BRIC and G7 countries.

This article presents independent calculations and insights based on 2007 data drawn from the U.S. Census Bureau – Foreign Trade Statistics.

The copyright of the article US Steel Imports & Exports in International Trade Commodities is owned by Daniel Workman. Permission to republish US Steel Imports & Exports in print or online must be granted by the author in writing.