✂ Fed’s first rate cut since 2020: Use our free Stock Screener to find new opportunities fastExplore for FREE

U.S. defence department says prefers targeted steel, aluminium tariffs

Published 23/02/2018, 03:21
© Reuters. FILE PHOTO: A worker helps load steel bars onto a truck at warehouse in Tangshan in China's Hebei Province

WASHINGTON (Reuters) - The U.S. Defense Department has voiced support for the Trump administration's bid to impose national security restrictions on imports of steel and aluminium, although it would prefer a system of targeted tariffs and a delay for import curbs on aluminium.

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

U.S. Defense Secretary James Mattis said he was concerned about the potential impact of the proposed measures on U.S. allies, adding that was the reason he preferred targeted tariffs.

"DoD believes that the systematic use of unfair trade practices to intentionally erode our innovation and manufacturing industrial bases poses a risk to our national security," Mattis wrote in an undated memorandum posted on Thursday on the Commerce Department website.

In the memo, which referenced a December interagency review of the commerce recommendations, he said that since direct defence needs account for only about 3 percent of U.S. production, the proposed curbs would not damage the Pentagon's ability to get steel and aluminium to meet national defence requirements.

But while Mattis recommended that the tariffs on steel should proceed, the administration should wait before pressing ahead with the measures on aluminium.

"The prospect of trade action on aluminium may be sufficient to coerce improved behaviour of bad actors," the department said.

© Reuters. FILE PHOTO: A worker helps load steel bars onto a truck at warehouse in Tangshan in China's Hebei Province

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

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.