{"id":345956,"date":"2025-07-22T16:11:22","date_gmt":"2025-07-22T21:11:22","guid":{"rendered":"https:\/\/michigandigitalnews.com\/index.php\/2025\/07\/22\/quick-and-dirty-check-on-whether-steel-prices-have-fallen\/"},"modified":"2025-07-22T16:11:22","modified_gmt":"2025-07-22T21:11:22","slug":"quick-and-dirty-check-on-whether-steel-prices-have-fallen","status":"publish","type":"post","link":"https:\/\/michigandigitalnews.com\/index.php\/2025\/07\/22\/quick-and-dirty-check-on-whether-steel-prices-have-fallen\/","title":{"rendered":"Quick and Dirty Check on Whether Steel Prices Have Fallen"},"content":{"rendered":"

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Recall CEA has asserted<\/a> that imported goods prices (incl tariffs) have fallen relative to domestically produced, based on conjoining 2017 IO tables and PCE data. I wondered whether imported goods prices and prices of close substitutes have fallen. To investigate, I do something simpler: look at steel import prices (ex-tariffs) and steel PPI (incl. tariffs).<\/p>\n

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Figure 1:<\/strong> Import price index for iron and steel (tan), PPI for cold rolled steel (blue), both in logs 2025M01=0. Source: BLS, and author\u2019s calculations.<\/em><\/p>\n

Effective June 4, a 50% Section 232 tariff has been in effect, rising from the previous 25%. Since January 2025, the import price index has fallen 3.5%, while the steel\/iron PPI has risen 22% (log terms). So as the 50% tariff comes into play, we should expect \u2014 on net \u2014 continued increases in the price of steel.<\/p>\n

More discussion at NYT<\/a>.<\/p>\n<\/p><\/div>\n

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