Impact of New Domestic Content Regulations in the Steel Industry, Still Unsure.

authorIcon By Normand Lemieux on May 08, 2017 topicIcon Insider

During his campaign, President Trump promised that he would protect the steel industry from unfair competition. A presidential memorandum has recently been issued, that would require all pipelines in the USA to be made in America, from initial melting to the application of coatings. This raises a lot of concerns in the industry. For more information check out Stephen Barlas blog post in The Fabricator.

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… very strict standards would force pipelines to derail projects on the books, resulting in lost business for the domestic industry. If written without any flexibility, this type of domestic-content policy could end up hurting the domestic steel industry it was supposed to help.

- Stephen Barlas

American steel manufacturers and energy companies alike will be impacted by the changes. Lots of questions remain unanswered. Does the American steel industry have the capacity to meet the demand? Will there be contingencies for current free trade partner countries? How will the new definitions of domestic content affect the price of the pipelines?

The Department of Commerce is expected to iron out the details of the new rules by January 2018.

*Photo credit : About Pipelines

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Normand Lemieux

Normand is a well-rounded and autonomous marketing professional with a recent specialization in web marketing. He thrives to share experiences, to apply knowledge, to learn new things and get stuff done.​