The US Commerce Department is urging President Trump to impose tariffs or quotas on imported aluminum and steel, which it calls a national security threat. The recommendations unveiled by Secretary Wilbur Ross are likely to escalate tensions with China and other US trading partners. CGTN's Nathan King has this story.
NATHAN KING WASHINGTON "The Trump administration says cheap imports of steel are driving domestic manufacturers who help produce US Military equipment out of business. So they are recommending the following. The US president has until April 11th to decide on the steel recommendations, April 19th on the Aluminum measures. He can pick any recommendation, amend them or decide not to act. The action has been fiercely resisted by steel producing countries including China as well as US manufacturers that rely on steel and aluminum at low prices like car makers and soft drink companies. Fears are prices will rise if these recommendations are implemented. Companies in the US can appeal.
The US using clause (232) in the 1962 Trade Expansion act that allows for Tariffs to be imposed if National Security is threatened. The Commerce Department argues that domestic production vital for aerospace and other military equipment is being priced out of business because there is an overcapacity in the world steel and Aluminum market.
Just the other day the US Commerce secretary Wilbur Ross was say the Chinese embassy for the celebration of Chinese New Year with the Chinese Ambassador to the US Cui Tiankai China and other nations say this unilateral action is against trading global rules will take their complaints to the World Trade Organization. But there is also chance of unilateral reciprocal action against the US, not just from China but others too. This latest trade move follows the announcement of Tariffs on imported Solar Panels and Cells and Washing Machines. The Trump administration is also in the process of renegotiating the North American Trade Agreement with its neighbors Mexico and Canada and pulled out of the Trans Pacific Partnership free trade deal with 11 other nations. The Trump administration says they are putting America first. In a globalized economy many economists argue this approach will make the US less competitive. NATHAN KING CGTN, WASHINGTON."