NOTE: “This is a step in the right direction, and hopefully the president responds sooner than later,” said Todd Leebow, the chief executive of Majestic Steel USA, which buys American-made steel from mills to sell to customers in construction, agriculture and other industries. Mr. Leebow said he had seen a troubling decline in the industry in recent years, and he was hopeful Mr. Trump’s measure might reverse that.
Trump Administration Proposes Stiff Penalties on Steel and Aluminum Imports
The New York Times
By Ana Swanson
February 16, 2018
https://www.nytimes.com/2018/02/16/us/politics/trump-administration-recommends-stiff-penalties-on-steel-and-aluminum-imports.html?mtrref=undefined
The Trump administration for the first time declared imports of steel and aluminum from China and other nations a threat to national security, laying the foundation for President Trump to impose the types of punitive tariffs he has long championed.
In a report released on Friday, the Commerce Department said a recent influx of foreign metals posed a risk to national security by threatening the viability of American manufacturers who make planes, armored vehicles and other products for the military. It outlined an array of recommendations the president could take to help domestic manufacturers struggling to stay competitive, including a sweeping tariff of 24 percent on steel imports from all countries.
The recommendations hand Mr. Trump an opportunity to make good on the get-tough approach to global trade that he has long espoused by giving him authority to decide the scope and severity of any trade action by mid-April. Mr. Trump has previously embraced tariffs on imports of steel and solar products as crucial to protecting American companies.
Yet erecting barriers could prompt swift retaliation from other trading partners, including China and the European Union, which have already warned of reciprocal action in response to protectionist measures. It could also further erode relations with foreign allies that might be ensnared by the measure and drive up prices for American consumers.
Wilbur Ross, the secretary of commerce, outlined three alternatives Mr. Trump could choose from to protect American steel producers, which have struggled to compete with a flood of cheap metals from China and other countries. The options included a broad 24 percent tariff on all steel imports, or a targeted 53 percent tariff on all steel products from 12 countries, including China, Brazil, India, South Korea and Vietnam. Under this option, imports from all other countries would be limited to the level they imported in 2017.
Mr. Ross also proposed an alternative for the steel industry that involved no tariffs, but would set a quota limiting steel imports from all countries to roughly two-thirds the level they were at last year.
For aluminum, the Commerce Department also outlined three alternatives, including a flat 7.7 percent tariff on imports from all countries, or a targeted 23.6 percent tariff on aluminum from China, Hong Kong, Russia, Venezuela and Vietnam. A third option involved putting into effect quotas to limit aluminum imports to lower levels than were shipped to the United States last year.
Mr. Ross did not indicate which way Mr. Trump might go, saying the president could pick a separate path, or reject the penalties altogether. But the president’s longstanding support for tariffs and his recent remarks suggest he is likely to support some kind of action.
In a meeting with lawmakers of both parties on Tuesday, Mr. Trump played down objections to the trade measures, and said that the United States was considering tariffs, quotas or both. “You may have a higher price, but you have jobs,” Mr. Trump told the bipartisan group.
Supporters of the trade action, including American steel companies and the United Steelworkers union, say American metal makers badly need the White House to step in and halt the flood of cheap imports, which has depressed the price for steel and aluminum. Many American steel and aluminum plants are struggling to compete in an oversaturated market and some have had to scale back production and eliminate jobs.
“This is a step in the right direction, and hopefully the president responds sooner than later,” said Todd Leebow, the chief executive of Majestic Steel USA, which buys American-made steel from mills to sell to customers in construction, agriculture and other industries. Mr. Leebow said he had seen a troubling decline in the industry in recent years, and he was hopeful Mr. Trump’s measure might reverse that.
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