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Trump launches trade probe targeting foreign steel

Reuters  |  WASHINGTON 

By Steve Holland and Mike Stone

(Reuters) - President Donald moved on Thursday against and other exporters of cheap into the U.S. market, launching a federal investigation to determine whether foreign-made threatens U.S. steelmakers and national security.

Winning praise from U.S. companies that are constantly fighting with foreign competitors, invoked a rarely-used trade law that raises the possibility of new tariffs. The action triggered a rally in U.S. stocks.

At a White House ceremony where he was surrounded by U.S. executives, signed a memorandum ordering the U.S. Commerce Department to probe the impact of imports on the U.S. defense industrial base.

"is critical to both our economy and our military. This is not an area where we can afford to become dependent on foreign countries," said Trump, a Republican.

The global market is in surplus. is the largest national producer and makes far more than it consumes. To find buyers for its excess output, sells cheap overseas, often undercutting domestic producers.

"Everything they export is dumping," said Derek Scissors, Asia economist at the American Enterprise Institute, a think tank.

U.S. Commerce Secretary Wilbur Ross cast the decision to initiate the probe as a response to Chinese exports of into the United States reaching the point where they now account for 26 percent of the U.S. market.

Chinese exports have risen "despite repeated Chinese claims that they were going to reduce their capacity," Ross said.

He said if the U.S. industry is deemed to be suffering from too much imports, he will recommend retaliatory steps that could include tariffs. ordered a probe under Section 232 of the Trade Expansion Act of 1962, which lets the president impose restrictions on imports for reasons of national security.

of the move triggered a rally for stocks, including Dynamics Inc , AK , U.S. , Nucor , Cliffs Natural Resources , and Allegheny Technologies .

The United States has nearly 100 plants that make millions of tons of annually. The U.S. government attempts to shield them from cheap foreign chiefly by filing anti-dumping actions with the World Trade Organization, but the administration said these have had little impact.

"The artificially low prices caused by excess capacity and unfairly traded imports suppress profits in the American industry," the administration said in a statement.

The Defense Department's annual requirements comprise less than 0.3 percent of the industry's output by weight.

"There is no doubt that plays a role in our national security and the manufacturing of U.S. weapons systems," said Jeff Bialos, a partner at law firm Eversheds Sutherland, who has worked on trade cases in the past.

"But the Department of Defense only consumes a small portion of domestic output, and this has decreased over the past decade as composites technology has advanced," Bialos said.

One of the military's largest consumers of are U.S. Navy shipbuilders Huntington Ingalls Industries and Lockheed Martin Corp .

Scissors questioned the administration's invoking of Section 232. He said the United States has other ways to take on over trade issues, other than invoking national security.

"Talking about it as a national security issue - I don't think it's necessary and I don't think it's justified," he said.

In October 2001, a Commerce Department investigation found "no probative evidence" that imports of iron ore and semi-finished threaten to impair U.S. national security.

Use of Section 232 could send another political message. "It does say we are not the same kind of administration as previous administrations," he added.

The move is another step in Trump's "America First" policies in which he has tried to boost U.S. manufacturers and preserve American jobs. won many votes in industrial Midwestern states like Michigan and Pennsylvania with a pledge to boost manufacturing and crack down on Chinese trade practices.

Democrats were cautious about Trump's step.

"While today's executive order to investigate potential national security vulnerabilities due to imports is a step forward, I will hold the administration accountable on its promises to fight for working Americans," said Connecticut Representative Rosa DeLauro in a statement.

U.S. said and other countries that have exported to the United States have cost U.S. manufacturing tens of thousands of jobs.

"For too long, and other nations have been conducting economic warfare against the American industry by subsidizing their industries, distorting global markets, and dumping excess into the United States. The effects have been staggering," a U.S. statement said.

The Commerce Department will have 270 days to complete the probe. Ross, a former executive, said he expected it to be done much sooner.

(Additional reporting by Jeff Mason in Washington; and Luciana Lopez and Caroline Valetkevitch in New York; Editing by Kevin Drawbaugh and Nick Zieminski)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Trump launches trade probe targeting foreign steel

WASHINGTON (Reuters) - President Donald Trump moved on Thursday against China and other exporters of cheap steel into the U.S. market, launching a federal investigation to determine whether foreign-made steel threatens U.S. steelmakers and national security.

By Steve Holland and Mike Stone

(Reuters) - President Donald moved on Thursday against and other exporters of cheap into the U.S. market, launching a federal investigation to determine whether foreign-made threatens U.S. steelmakers and national security.

Winning praise from U.S. companies that are constantly fighting with foreign competitors, invoked a rarely-used trade law that raises the possibility of new tariffs. The action triggered a rally in U.S. stocks.

At a White House ceremony where he was surrounded by U.S. executives, signed a memorandum ordering the U.S. Commerce Department to probe the impact of imports on the U.S. defense industrial base.

"is critical to both our economy and our military. This is not an area where we can afford to become dependent on foreign countries," said Trump, a Republican.

The global market is in surplus. is the largest national producer and makes far more than it consumes. To find buyers for its excess output, sells cheap overseas, often undercutting domestic producers.

"Everything they export is dumping," said Derek Scissors, Asia economist at the American Enterprise Institute, a think tank.

U.S. Commerce Secretary Wilbur Ross cast the decision to initiate the probe as a response to Chinese exports of into the United States reaching the point where they now account for 26 percent of the U.S. market.

Chinese exports have risen "despite repeated Chinese claims that they were going to reduce their capacity," Ross said.

He said if the U.S. industry is deemed to be suffering from too much imports, he will recommend retaliatory steps that could include tariffs. ordered a probe under Section 232 of the Trade Expansion Act of 1962, which lets the president impose restrictions on imports for reasons of national security.

of the move triggered a rally for stocks, including Dynamics Inc , AK , U.S. , Nucor , Cliffs Natural Resources , and Allegheny Technologies .

The United States has nearly 100 plants that make millions of tons of annually. The U.S. government attempts to shield them from cheap foreign chiefly by filing anti-dumping actions with the World Trade Organization, but the administration said these have had little impact.

"The artificially low prices caused by excess capacity and unfairly traded imports suppress profits in the American industry," the administration said in a statement.

The Defense Department's annual requirements comprise less than 0.3 percent of the industry's output by weight.

"There is no doubt that plays a role in our national security and the manufacturing of U.S. weapons systems," said Jeff Bialos, a partner at law firm Eversheds Sutherland, who has worked on trade cases in the past.

"But the Department of Defense only consumes a small portion of domestic output, and this has decreased over the past decade as composites technology has advanced," Bialos said.

One of the military's largest consumers of are U.S. Navy shipbuilders Huntington Ingalls Industries and Lockheed Martin Corp .

Scissors questioned the administration's invoking of Section 232. He said the United States has other ways to take on over trade issues, other than invoking national security.

"Talking about it as a national security issue - I don't think it's necessary and I don't think it's justified," he said.

In October 2001, a Commerce Department investigation found "no probative evidence" that imports of iron ore and semi-finished threaten to impair U.S. national security.

Use of Section 232 could send another political message. "It does say we are not the same kind of administration as previous administrations," he added.

The move is another step in Trump's "America First" policies in which he has tried to boost U.S. manufacturers and preserve American jobs. won many votes in industrial Midwestern states like Michigan and Pennsylvania with a pledge to boost manufacturing and crack down on Chinese trade practices.

Democrats were cautious about Trump's step.

"While today's executive order to investigate potential national security vulnerabilities due to imports is a step forward, I will hold the administration accountable on its promises to fight for working Americans," said Connecticut Representative Rosa DeLauro in a statement.

U.S. said and other countries that have exported to the United States have cost U.S. manufacturing tens of thousands of jobs.

"For too long, and other nations have been conducting economic warfare against the American industry by subsidizing their industries, distorting global markets, and dumping excess into the United States. The effects have been staggering," a U.S. statement said.

The Commerce Department will have 270 days to complete the probe. Ross, a former executive, said he expected it to be done much sooner.

(Additional reporting by Jeff Mason in Washington; and Luciana Lopez and Caroline Valetkevitch in New York; Editing by Kevin Drawbaugh and Nick Zieminski)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard
177 22

Trump launches trade probe targeting foreign steel

By Steve Holland and Mike Stone

(Reuters) - President Donald moved on Thursday against and other exporters of cheap into the U.S. market, launching a federal investigation to determine whether foreign-made threatens U.S. steelmakers and national security.

Winning praise from U.S. companies that are constantly fighting with foreign competitors, invoked a rarely-used trade law that raises the possibility of new tariffs. The action triggered a rally in U.S. stocks.

At a White House ceremony where he was surrounded by U.S. executives, signed a memorandum ordering the U.S. Commerce Department to probe the impact of imports on the U.S. defense industrial base.

"is critical to both our economy and our military. This is not an area where we can afford to become dependent on foreign countries," said Trump, a Republican.

The global market is in surplus. is the largest national producer and makes far more than it consumes. To find buyers for its excess output, sells cheap overseas, often undercutting domestic producers.

"Everything they export is dumping," said Derek Scissors, Asia economist at the American Enterprise Institute, a think tank.

U.S. Commerce Secretary Wilbur Ross cast the decision to initiate the probe as a response to Chinese exports of into the United States reaching the point where they now account for 26 percent of the U.S. market.

Chinese exports have risen "despite repeated Chinese claims that they were going to reduce their capacity," Ross said.

He said if the U.S. industry is deemed to be suffering from too much imports, he will recommend retaliatory steps that could include tariffs. ordered a probe under Section 232 of the Trade Expansion Act of 1962, which lets the president impose restrictions on imports for reasons of national security.

of the move triggered a rally for stocks, including Dynamics Inc , AK , U.S. , Nucor , Cliffs Natural Resources , and Allegheny Technologies .

The United States has nearly 100 plants that make millions of tons of annually. The U.S. government attempts to shield them from cheap foreign chiefly by filing anti-dumping actions with the World Trade Organization, but the administration said these have had little impact.

"The artificially low prices caused by excess capacity and unfairly traded imports suppress profits in the American industry," the administration said in a statement.

The Defense Department's annual requirements comprise less than 0.3 percent of the industry's output by weight.

"There is no doubt that plays a role in our national security and the manufacturing of U.S. weapons systems," said Jeff Bialos, a partner at law firm Eversheds Sutherland, who has worked on trade cases in the past.

"But the Department of Defense only consumes a small portion of domestic output, and this has decreased over the past decade as composites technology has advanced," Bialos said.

One of the military's largest consumers of are U.S. Navy shipbuilders Huntington Ingalls Industries and Lockheed Martin Corp .

Scissors questioned the administration's invoking of Section 232. He said the United States has other ways to take on over trade issues, other than invoking national security.

"Talking about it as a national security issue - I don't think it's necessary and I don't think it's justified," he said.

In October 2001, a Commerce Department investigation found "no probative evidence" that imports of iron ore and semi-finished threaten to impair U.S. national security.

Use of Section 232 could send another political message. "It does say we are not the same kind of administration as previous administrations," he added.

The move is another step in Trump's "America First" policies in which he has tried to boost U.S. manufacturers and preserve American jobs. won many votes in industrial Midwestern states like Michigan and Pennsylvania with a pledge to boost manufacturing and crack down on Chinese trade practices.

Democrats were cautious about Trump's step.

"While today's executive order to investigate potential national security vulnerabilities due to imports is a step forward, I will hold the administration accountable on its promises to fight for working Americans," said Connecticut Representative Rosa DeLauro in a statement.

U.S. said and other countries that have exported to the United States have cost U.S. manufacturing tens of thousands of jobs.

"For too long, and other nations have been conducting economic warfare against the American industry by subsidizing their industries, distorting global markets, and dumping excess into the United States. The effects have been staggering," a U.S. statement said.

The Commerce Department will have 270 days to complete the probe. Ross, a former executive, said he expected it to be done much sooner.

(Additional reporting by Jeff Mason in Washington; and Luciana Lopez and Caroline Valetkevitch in New York; Editing by Kevin Drawbaugh and Nick Zieminski)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22