Steel makes its case on national security
Imports are a threat, it tells White House
Pittsburgh Post-Gazette
President Donald J. Trump has received a long-awaited report on whether steel imports pose enough of a threat to national security to do something about it.
And domestic steelmakers are optimistic the White House will provide them with the relief they say they need.
“We are confident that we have made the case that repeated surges in steel imports in recent years threaten to impair our national security,” American Iron and Steel Institute president Thomas Gibson said in a statement released by the Washington, D.C.based trade group.
Mr. Trump ordered U.S. Commerce Secretary Wilbur Ross, a former steel producer, to investigate the issue last April. Mr. Ross raised hopes he would report back by June. But that deadline came and went as opponents argued import restrictions would endanger jobs and the economy.
The study was authorized by a seldom used 1962 trade law that allows the White House to impose penalties on imports if they threaten national security. President George W. Bush last invoked the law in 2001 in the case of iron ore and semifinished steel imports. That probe determined national security was not threatened and no penalties were imposed.
Mr. Ross’ policy recommendations to the White House were not disclosed. They could include duties or quotas on imports, or a combination of both. A decision to do nothing would be a major disappointment to those who expected Mr. Trump to protect American jobs and industry.
The White House has 90 days to determine what action, if any, to take.
Mr. Trump ordered a similar investigation of aluminum imports. Mr. Ross’ report on that issue is due by Jan. 22.
The Republican president’s campaign promises to “Make America Great Again” have bolstered anticipation that the administration will act.
“We are confident that President Trump takes actions and remedies that are broad, meaningful and impactful,” Steel Manufacturers Association president Philip Bell said in a statement.
Pittsburgh steelmaker U.S. Steel encouraged the White House to take “swift and decisive action.”
Last summer, a group of former White House economic advisers, including former Federal Reserve Board chairmen Alan Greenspan and Ben Bernanke, warned that import restrictions would jeopardize trade relations with Canada, Mexico and other important allies and harm the U.S. economy.
The European Union threatened to retaliate if penalties were imposed on its steel exports by imposing duties on a host of U.S. exports, including Kentucky bourbon.
U.S. manufacturers who make products from steel say domestic steelmakers cannot provide some of the products that are essential to their businesses. Penalizing or restricting imports would jeopardize jobs and profits, they say.
Other critics point out that Mr. Trump used imported steel and aluminum in his construction projects.
Through November, steel imports were up nearly 18 percent, according to the American Iron and Steel Institute. Imports of highermargin finished steel have captured about 27 percent of the U.S. market, the industry group said.