imported steel, regardless of its country of origin citing US security concerns.
In mid-July, the President officially launched a Section 232 review of the domestic steel industry which allows for such tariffs on imports believed to be a threat to national security.
But just because President Trump is “hell-bent” on some- thing doesn’t mean it’s going to get done.
By David MacDonald I s it a good move to call something that President Donald Trump is reportedly “hell-bent” on doing a “silly” thing? Do you remember when the former president mocked Trump’s presidential aspirations at the White House Corre- spondents Dinner in 2011? Well maybe Prime Minister Justin Trudeau should have taken a cue from what came from that night in Washington over six years ago and stayed mum on the President’s latest move to put the US steel industry on the America First path. According to Joe Deaux and Jennifer Jacobs of Bloomberg, Brazil, Canada, and South Korea are the top- suppliers of steel to the US, with Canada on the top of that list. Seven- teen percent of steel used by American industries comes from The Great White North with only 4 percent coming from Asian markets (excluding South Korea which comes in at nearly 10 percent). The bottom line is that the US is a net importer of steel – for now. While Prime Minister Trudeau’s hand seems strong on this one, he’s playing against a President who is confident in his hand regardless of the cards in it. President Trump is report- edly prepared to impose tariffs as high as 20 percent on all
We could easily be hearing the words “No one knew steel and NAFTA were this complicated” before the expiration of the Section 232 review in early 2018. A former GOP leadership aide told Bloomberg that the President’s attempt to unilaterally impose tariffs just doesn’t have the kind of support it needs from congressio- nal Republican leaders. This seems to be a theme in the President’s first six months in office. More and more world leaders – and Canadian premiers – are dealing directly with state officials and rep- resentatives rather than the White House itself and the message seems clear: old alliances, economic and political, won’t be shaken. Gary Cohn, the White House economic adviser, said that “On trade, no less than on alliances, America First does not mean America alone. We ask the G-20 economies to join us in this effort and to take concrete actions to solve these problems. But let us be clear: We will act to ensure a level playing field for all.” Source(s): Bloomberg, CNBC
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SPOTLIGHT ON BUSINESS MAGAZINE • AUGUST 2017
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