CNN: US Tariffs on Steel Would Hit China and Entire Global Trading System

The Trump administration, after complaining about China’s low prices for steel, has a deadline of April 11 for deciding on new steel tariffs. “However, China is not the top country from which the United States imports steel,” explains Julia Horowitz for CNN. “The United States imports most of its steel – 16% – from Canada. It imports 13% from Brazil, 10% from South Korea, 9% from Mexico and 9% from Russia, according to a Department of Commerce report from December 2017.” China exports less steel to the United States due to previous penalties. The US Department of Commerce offered recommendations of applying across-the-board tariffs or targeting select nations with tariffs or caps. Piling more penalties on China would not mean much, increasing the cost of many products for Americans, while across-the-board tariffs could invite retaliation in other industries including agriculture. The Trump administration may try framing the industry trade deficit as a national security issue. US steel producers, some with foreign ownership, are also exporters: 90 percent of US exported steel goes to Canada and Mexico. The United States can expect to be less competitive and pay more for steel products by rejecting supply chains. – YaleGlobal