The US commerce department has recommended that Donald Trump impose
steep curbs on steel and aluminum imports from China and other nations ranging
from global and country-specific tariffs to broad import quotas, according to
proposals released on Friday.
The long-awaited proposals would fulfill Trump’s campaign promise to
protect the US steel industry from foreign competition, particularly from
China. They are also likely to spark threats of retaliation.
The reviews suggest imposing tariff options of at least 24% on all
steel products from all countries, and at least 7.7% on all aluminum products
from all countries. Brazil, China, Russia, South Korea, South Africa and
Vietnam were among the countries specifically mentioned in the review.
The reviews were presented to Trump last month after complaints by US
producers that foreign dumping of the two metals was shutting them out of
business. Trump authorized the probes under a 1962 trade law that has not been
invoked since 2001.
The US commerce secretary Wilbur Ross emphasized that Trump would have
the final say, including on whether to exempt certain countries, such as Nato
allies, from any actions.
Trump has until April 11 to announce his decision on steel import
curbs and by April 20 to decide on aluminum restrictions.
“The president has the discretion to modify any of these or to come
with something totally different,” he told reporters.
Steel stocks soared on the recommendations.
Ross said he would not be surprised if countries challenged the
measures at the World Trade Organization.
He said “there has been no dialing back” of the recommendations due to
objections from industries that use steel and aluminum.
“The objective of both reports is to get the production up to a level
which will result, in our judgment, in the long term viability of each
industry,” Ross said, adding that he did not believe that the recommendations
would lead to significant price hikes.
US Senate Democratic leader Chuck Schumer said he hoped the proposals
“are the beginning of efforts by this administration to finally get tough on
China”.
Some US companies will be able to request exclusions for specific
products if the US lacks sufficient domestic capacity or for national security
considerations, Ross added.
Trump met with a bipartisan group of US senators and congresspeople at
the White House last week, signaling he would take at least some action to
restrict imports of the two metals.
Some US lawmakers and steel and aluminum users have urged caution in
any restrictions to avoid disruptions or price spikes in the raw materials,
used in everything from autos to appliances and aircraft and construction.
Source: The Guardian