Trump Readies a Hefty Penalty on China

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Financial markets reacted to the Trump steel and aluminum tariffs with an initial sharp selloff, although they have since regained their poise.

Trump followed through on threatened steel and aluminum tariffs, but then allowed countries to seek waivers.

"I hope both countries will act rationally instead of being led by emotions and avoid a trade war", he said during a press conference.

But saying it's unclear if we'll see such a proposal is an understatement. "There's no indication by the USTR as to how this is going to work".

Coming full circle back to the tariffs, the White House must leverage them to eliminate overcapacity in the steel industry or we will be back in the emergency department yet again.

Trade Commissioner Cecilia Malmstroem, the EU's top trade official, is in Washington to meet US Commerce Secretary Wilbur Ross and other officials to unblock the issue. USA officials and industry representatives suspect that such circumvention is happening particularly through Turkey, South Korea and Vietnam, but there's been no definitive study confirming that.

Expressing concern about Trump's "dogmatic and ideological decision", Roth said that "we are at the moment - and the clock is ticking - a long way from a sensible solution". "Our hope is end by the end of April we (will) have this part of the process resolved". There can also be exclusions based on specific national security considerations.

"They want to cut deals with everybody".

Sanders also said there is "no apparent nexus to terrorism at this time".

The association wants the European Union to impose "safeguard" measures that would limit imports of steel products covered by the US tariffs to levels of the past few years.

The deadline for the metals tariffs comes just as the administration prepares to slap big tariffs and impose investment restrictions on China for strong-arming USA companies into handing over technology. Imports from Canada and Mexico will initially be exempted from the tariffs and the order left the door open for exemptions for other countries in the future. "If you exclude Europe, why not Japan?"

Trump intends to impose duties of 25% on imported steel and 10% on aluminum imports
Trump intends to impose duties of 25% on imported steel and 10% on aluminum imports

He said authorities were "working to get to the bottom of it".

"This would have a moderate impact on growth in both the USA and China", it said.

"We provide inputs that make USA steel more competitive", Amaral said.

All three countries and others have called on Trump to exempt their countries from the tariffs. But shipping steel from China to Brazil costs more than twice as much as sending it to East Coast ports in the United States, making such transshipment impractical.

Members of Congress are anxious that the aggressive action will invite a counterpunch from China and that US farmers are especially vulnerable to retaliatory tariffs on American soybeans.

The EU has said it plans to impose safeguards but has not said how comprehensive they would be.

On Monday, she said she wants to work with the USA and other partners to address the "root cause" of the issue, according to the report.

"We are up for seeking an exemption". Trump has approved new pipeline plans like the Keystone XL that include imported steel.

Commerce is getting a late start.

"This looks much more like a president who is excessively eager to apply tariffs than a well-calculated move to defend American interests", Phil Levy, who was a trade adviser to President George W. Bush told the Washington Post.

But Reinsch, an worldwide business specialist at the Center for Strategic and global Studies, said that the process should operate in a straightforward manner now that it is up and running.

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