The US Commerce Department finally released its report on investigations into steel and aluminum imports on Friday, recommending wide-ranging tariffs and quotas on products coming into the United States.
It will be up to President Trump what he wants to do with the recommendations, though he has publicly indicated he sides with Commerce Secretary Wilbur Ross on the issue of trade restrictions. Cabinet members including Gary Cohn, Steven Mnuchin, Rex Tillerson and James Mattis are reportedly opposed to using the Section 232 law, cited by the report, to impose tariffs on national security grounds.
From the statement released on the Commerce Department website:
Recommendations of the Steel Report:
Secretary Ross has recommended to the President that he consider the following alternative remedies to address the problem of steel imports:
- A global tariff of at least 24% on all steel imports from all countries, or
- A tariff of at least 53% on all steel imports from 12 countries (Brazil, China, Costa Rica, Egypt, India, Malaysia, Republic of Korea, Russia, South Africa, Thailand, Turkey and Vietnam) with a quota by-product on steel imports from all other countries equal to 100% of their 2017 exports to the United States, or
- A quota on all steel products from all countries equal to 63% of each country’s 2017 exports to the United States.
Each of these remedies is intended to increase domestic steel production from its present 73% of capacity to approximately an 80% operating rate, the minimum rate needed for the long-term viability of the industry. Each remedy applies measures to all countries and all steel products to prevent circumvention.
The recommendations regarding aluminum advocated similarly severe actions:
- A tariff of at least 7.7% on all aluminum exports from all countries, or
- A tariff of 23.6% on all products from China, Hong Kong, Russia, Venezuela and Vietnam. All the other countries would be subject to quotas equal to 100% of their 2017 exports to the United States, or
- A quota on all imports from all countries equal to a maximum of 86.7% of their 2017 exports to the United States.
Washington DC-based news website AXIOS captured the concern of one former senior government trade official:
“[T]he opening shot in a trade war… a declaration of war against the world on aluminum and steel… These are some of our closest treaty allies… These are some serious numbers.”
Another unnamed “trade expert,” chose even more alarmist words:
“This would be beyond a trade war. You’re talking about blowing up the WTO.”
China’s Commerce Ministry has urged the US to exercise restraint in using trade protection tools and respect the rules of multilateral trade.
“If the final US decision affects China’s interests, China must take necessary measures to protect its own reasonable interests,” the ministry told Reuters, without giving details.
This ought to be good and fun … if only Trump and his cabinet would have the nerve to start it.
I’m pretty sure many traders in New York have been praying for a few years of ultra-wild gyrations in the currency, commodities, and stock market.
China and friends (notably Russia, Iran) have probably been waiting for the right opportunity to deliver the final blow (or a series of final blows) to the exposed hegemon.
PATHETIC + FARCE …wonder when the USA ordinary people has the ( cojones ) to get these stupid politicians out …put them in jail for USELESS ,mockery , farce ,waste of $$$ …just too much ….!!!
I hope Trump thinks about what he will do.in regards tariffs and other punitive business actions. Otherwise, the consequences will be catasthophic. It will not only affect the Empire of Chaos but fthe rest of the world.as well especially since now in days, we are connected in one way or another.. He thinks by doing this willl Americans see it as he is doing a great job for his country. That is far from the truth. See, his political base is about a third of the total Americans voters. A base that felt they were left out in the cold by past politicians. Some of those people are linked to the extreme hard conservative wing where racism, immigration and inperialism are their main concern. But the reality of the Americans system is all the poltical leaders whether they are Democrats or Republicans do the same for the corporations..The difference is a subtle degree.of intensity. It is a reciprocal thing where the corporations do their part by providing lots of money to their electoral campaigns.
Trump also got lots of money from those corporations mainly linked to oil, gas and minerals.
Going back to my point. This llist of sanctions could be another of his ways to negotiate many issues that are happening this year, such as the launch of the Yuan oil futures, North Korea, Syria and its oil bases. Trump definitely seems firm to keep his options on the oil fields in the Middle East. Not matter that USA has been humilliated and defeated and in many ways have been told, Yanqui Go Home. She keeps at it. So,she is at it on the other matters.