Trump still plans to tax steel imports
new york — The head of America’s top steel producer said he has received assurances from the White House that President Donald Trump is still determined to impose tariffs on steel imports despite repeated delays on a decision.
John Ferriola, the CEO of Nucor Corp, said he was told by an official in the administration who regularly meets with Trump that the president brings up the matter several times a week. Ferriola said he has no direct knowledge of the deliberations or any indication that a firm decision had been reached.
“We remain very positive. When we met with the administration, and I’ve done it several times within the last 30 days, they say that steel is still big on the president’s mind,” Ferriola said. “Last week someone in the administration told me they meet with the president every day, and at least two to three times a week Trump asks, ‘Where are my tariffs? What are we doing?’”
The Trump administration missed a self-imposed deadline at the end of June to complete an investigation into whether steel imports threaten national security. Commerce Secretary Wilbur Ross, whose department is leading the probe, told Bloomberg that a decision on steel tariffs has been delayed until after tax reform is completed, which Trump wants done by year-end. Commerce has until mid-January to complete its investigation under the seldomused Section 232 of the Trade Expansion Act.
Trump has repeatedly complained that steel dumping is distorting the global market, singling out China as a chief culprit, and said he’s considering imposing tariffs and quotas on steel imports to deal with the “big problem.” Trump’s promise to protect the domestic steel industry was part of his main campaign theme to revive manufacturing that drew in support from the Rust Belt states.
Nucor is among US steel makers that have been lobbying for stronger action on steel imports, which they say will offer protection against foreign competitors who are acting unfairly by undercutting prices. Meanwhile, US steel users, who rely on cheaper imports, have said it could raise prices for consumer goods they manufacture.
Industry experts have warned that imposing tariffs on US steel imports would risk triggering swift tit-for-tat trade reprisals. Measures on steel could complicate relations as the US steps up pressure on China to help contain North Korea’s nuclear and ballistic missile ambitions. Ross flagged the possibility of recommending imposing tariffs, quotas or a combination of the both during discussions earlier this year.
Steel imports have risen 24 per cent this year through August, according to US Census Bureau data. Imports from China, the world’s biggest producer, are up about seven per cent this year. — Bloomberg