Lourenco Goncalves, the CEO, President and Chairman of Cleveland-Cliffs Inc (NYSE:CLF), reported that they are in support of the recent decision of President Trump. More recently, President Trump stated that his administration will impose tariffs on aluminum and steel imports, an extremely controversial move that Trump designed along national and economic security lines.
Trump reported that the U.S. will levy a 25% tariff on steel imports to shore up the struggling markets, capping a fierce long internal discussion that brought the President’s top advisers at odds. The move is likely to get retaliatory measures from foreign nations, increasing the threat of a trade war between the U.S, and many other steel-producing nations.
The CEO of Cleveland-Cliffs reported that this move will help them to support iron ore pellets and steel production in their nation. This step will result in a vibrant manufacturing economy and support national security. If it is considered that artificially cheap steel supported by subsidies, circumvention and dumping are signs of competitiveness, then it is a misconception. These are merely indications of blatant disregard to real free trade as well as to trade laws.
The CEO of Cleveland-Cliffs reported that that freedom from such kind of unfair practices will result in a level playing field for steel in the U.S. They expect that the reported measures will be implemented as planned, ensuring that the offenders get their much deserved punishment.
In unrelated news, Cleveland-Cliffs Inc. reported an Amended ABL Facility, wherein the new size of the credit facility stands at $450 million, reduced from earlier figure of $550 million. The company not only extended its maturity but even announced a number of improvements to the previous deal. The “Initial ABL Facility” was implemented in March 2015. These changes are an outcome of the firm’s improved financial condition.