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Report: Trump Wants Steel Tariffs. The Rest of His Administration Doesn't.
06/30/2017 - U.S. President Donald Trump and a few of his advisers are “hell-bent” on imposing steel tariffs, despite the objections of many others in his administration, according to the online publication Axios.
Based on accounts from unidentified administration sources, Axios detailed a contentious 26 June White House meeting, during which Trump and two other officials made it clear that they want to impose tariffs.
Many others, however, told the president that doing so would be ill-advised. Tariffs and other import restrictions imposed under Section 232 of the U.S. Trade Expansion Act of 1962 could cause collateral damage to allies such as Canada, Mexico, Japan, Germany and the United Kingdom, they said.
And some of those countries are not sitting idly by as the Trump Administration sets a course.
According to the (London) Financial Times, the European Union is preparing to retaliate if the U.S. proceeds with a blanket tariff on steel imports.
“We are a friend and an ally of the U.S., and we think that we would be unjustifiably hit by this,” E.U. trade commissioner Cecilia Malmström said. “We would have to see if that measure is in compliance with the World Trade Organization of course — and if it hits us like it could, we will of course retaliate.
“Exactly how and when I will not answer now, but of course we are making preparations.”
U.S. steel producers generally support some sort of action to restrict imports, but not all in the steel industry think tariffs are a good idea.
“I’m sympathetic to American steel mills, but if they protect domestic steel, they’re going to be hurting steel fabricators, which employ a hundred times more people,” Drew Greenblatt, chief executive of Baltimore-based Marlin Steel Wire Products, told the Los Angeles Times.
The steel world won’t learn of the degree to which the Trump Administration hopes to protect U.S. producers until the Commerce Department releases its Section 232 report, which will include recommendations on potential tariffs and restrictions.
The report had been expected to come this week, but it now likely will be delayed until after the Group of 20 summit scheduled for 7-8 July in Germany, according to the Reuters news service.
Reuters said the U.S. intends to use the Section 232 investigation to press other G20 members into taking action on excess steel capacity and other steel market distortions.
Many others, however, told the president that doing so would be ill-advised. Tariffs and other import restrictions imposed under Section 232 of the U.S. Trade Expansion Act of 1962 could cause collateral damage to allies such as Canada, Mexico, Japan, Germany and the United Kingdom, they said.
And some of those countries are not sitting idly by as the Trump Administration sets a course.
According to the (London) Financial Times, the European Union is preparing to retaliate if the U.S. proceeds with a blanket tariff on steel imports.
“We are a friend and an ally of the U.S., and we think that we would be unjustifiably hit by this,” E.U. trade commissioner Cecilia Malmström said. “We would have to see if that measure is in compliance with the World Trade Organization of course — and if it hits us like it could, we will of course retaliate.
“Exactly how and when I will not answer now, but of course we are making preparations.”
U.S. steel producers generally support some sort of action to restrict imports, but not all in the steel industry think tariffs are a good idea.
“I’m sympathetic to American steel mills, but if they protect domestic steel, they’re going to be hurting steel fabricators, which employ a hundred times more people,” Drew Greenblatt, chief executive of Baltimore-based Marlin Steel Wire Products, told the Los Angeles Times.
The steel world won’t learn of the degree to which the Trump Administration hopes to protect U.S. producers until the Commerce Department releases its Section 232 report, which will include recommendations on potential tariffs and restrictions.
The report had been expected to come this week, but it now likely will be delayed until after the Group of 20 summit scheduled for 7-8 July in Germany, according to the Reuters news service.
Reuters said the U.S. intends to use the Section 232 investigation to press other G20 members into taking action on excess steel capacity and other steel market distortions.
