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Defense Officials Support Targeted Steel Tariffs


Idled blast furnaces at U.S. Steel Corp's Granite City Works in Granite City, Illinois, July 5, 2017. U.S. President Donald Trump is considering steel import curbs based on a national security review of the industry.
Idled blast furnaces at U.S. Steel Corp's Granite City Works in Granite City, Illinois, July 5, 2017. U.S. President Donald Trump is considering steel import curbs based on a national security review of the industry.

The U.S. Defense Department supports moves by the Commerce Department to impose tariffs on steel and aluminum imports, although it would prefer a system of targeted tariffs rather than a global quota or a global tariff.

The Commerce Department on Feb. 16 recommended that President Donald Trump impose steep curbs on steel imports from China and other countries and offered the three options to the president, who has yet to make a decision.

The Defense Department said in a statement issued Thursday that it was concerned about the potential impact on U.S. allies of the proposed measures and said that was the reason it preferred targeted tariffs.

It recommended that while the tariffs on steel should proceed, the administration should wait before pressing ahead with the measures on aluminum.

β€œThe prospect of trade action on aluminum may be sufficient to coerce improved behavior of bad actors,” the department said.

Commerce Secretary Wilbur Ross said last week that Trump would have the final say on what measures to adopt.

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    Reuters

    Reuters is a news agency founded in 1851 and owned by the Thomson Reuters Corporation based in Toronto, Canada. One of the world's largest wire services, it provides financial news as well as international coverage in over 16 languages to more than 1000 newspapers and 750 broadcasters around the globe.

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