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U.S. weighs tariffs, quota to restrict steel, aluminium imports

Source: Xinhua| 2018-02-17 03:56:08|Editor: yan
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WASHINGTON, Feb. 16 (Xinhua) -- U.S. Commerce Department on Friday unveiled its recommendations for President Donald Trump to restrict imports of steel and aluminium products due to national security concerns, which drew oppositions from U.S. lawmakers and businesses.

Under the Section 232 of the Trade Expansion Act of 1962, the agency found that "the quantities and circumstances of steel and aluminum imports 'threaten to impair the national security,' as defined by Section 232," the Commerce Department said in a statement on Friday.

In accordance with the finding, the agency recommended three separate options for President Trump to restrict the steel and aluminum imports.

In the case of steel, the agency recommended that the U.S. introduces either at least 24 percent tariff on all steel imports from all countries or at least 53 percent tariff on all steel imports from 12 countries, including Brazil, China, india, and Republic of Korea.

The third option is to impose a quota on all steel products from all countries equal to 63 percent of each country's 2017 exports to the United States.

As for the aluminium case, the Commerce Department recommended the President imposes at least 7.7 percent tariff on all aluminium imports from all countries.

The second option is to take a 23.6 percent tariff on all products from China, China's Hong Kong, Russia, Venezuela and Vietnam. All other countries would be subject to quotas equal to 100 percent of their 2017 exports to the United States.

The third option is to impose a quota on all imports from all countries equal to a maximum of 86.7 percent of their 2017 exports to the United States.

President Trump is required to make a decision on the steel recommendations by April 11, and on the aluminum recommendations by April 19.

Commerce Secretary Wilbur Ross on Friday said at a press teleconference that the president was not bound by the agency's recommendations.

"The President may take a range of actions, or no action, based on the analysis and recommendations," said Ross.

"Action could include making modifications to the courses of action proposed, such as adjusting percentages," he added.

At the teleconference, Ross admitted that if imports restrictions come into action, U.S. will face legal challenge at the World Trade Organization or trade retaliation from other countries.

The imports restrictions recommendations have received oppositions from U.S. lawmakers and businesses.

In a meeting with President Trump this week, many lawmakers voiced their concerns over trade restrictions of steel and aluminium imports, saying that trade restrictions would drive up consumer costs and invites retaliation from other countries.

"The availability of those imports and the absence of additional duties on those means that those goods can be manufactured and sold more cost effectively. That keeps a whole lot of people, including a whole lot of voters in each of our states -- a whole lot in mine, certainly -- in jobs," said Republican Senator Mike Lee at the meeting.

"Even though there may be some job winners from an action like this, I strongly suspect that, as has at times been the case in the past, you would end up with net job losses in the United States," Lee said.

"The 232 (investigation) is a different matter, and invoking national security, when I think it's really hard to make that case, invites retaliation that will be problematic for us," said Republican Senator Pat Toomey.

Trump administration's proposals also drew opposition from businesses and trade experts.

"Using the national security power provided for by Section 232 of the Trade Expansion Act of 1962 to justify steel protectionism sets a dangerous precedent - one that could unwind the post-World War II rules-based global trading system that's been an enormous benefit to the United States," said Clark Packard, trade policy manager at the Washington-based think tank R Street Institute, on Friday.

"Heavy steel tariffs will weaken the United States both economically and strategically," he said.

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