Area Steel Company Will Take a Big Hit From Trump Tariffs

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Stating that he wants a lot of steel coming to the US, Trump asserted that he wants it to be "fair".

US President Donald Trump said on Sunday that the new tariffs he imposed on imported steel and aluminium would be cancelled if the European Union, in its turn, lifted the import duties on the US goods.

Experts say Beijing may not be ready to deploy that tactic, though, given China's reliance on imports of the oilseed to make animal feed for its vast livestock sector. At least for now.

European Trade Commissioner Cecilia Malmström said in a tweet that the European Union is a "close ally" of the United States and "we continue to be of the view that the EU should be excluded from these measures". "It's pointless talking in public about the ways you might retaliate until you have to act", said a second source familiar with the issue who spoke on the condition of anonymity.

Rebuilding the US's aluminium and steel industries was a major pledge in Trump's election campaign and he says the nation will "win big" in any future trade war.

US President Donald Trump officially implemented the measures yesterday, leaning on a little-used and decades-old national security clause in US trade law.

The administration argued that healthy steel and aluminum industries are vital to the national defense. The levies are due to go into effect in 15 days.

Foreign Affairs Minister Chrystia Freeland discussed the tariffs with USA trade representative Robert Lighthizer and Republican House Speaker Paul Ryan. Norman and a handful of prominent Australian business leaders signed a letter beseeching Mr Trump not to take "any action that might have demonstrable negative impact on the mutually beneficial American-Australian bilateral relationship". "It's really an assault on our country".

Shares in China's steel and aluminum makers fell on Friday morning.

South Korean officials have argued that only 2.4 per cent of steel exported to the U.S. in 2016 used Chinese material.

Within hours of that meeting came the biggest blow of all to the administration's protectionist schemes.

China's government hasn't just issued statements, it has also taken action, launching an anti-dumping investigation into US sorghum - an animal feed - in February.

Canada and Mexico were never Trump's primary targets.

"We are extremely anxious about the consequences of a trade war and are urging the White House to not advance with this plan", Ryan spokesperson AshLee Strong said. Renegotiations over NAFTA began last summer.

In commodities, oil prices inched back after falling more than 2 percent the previous day on record USA crude production and rising inventories.

In Campbell, Texas, just outside of Rockwall, QMF Steel owners say the tariffs are already costing them millions.

The outcome "is a step forward", Foreign Minister Chrystia Freeland said in a statement Thursday.

"The market has managed to digest Cohn's resignation", said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo. "No immediate clarity on the exact United States procedure for exemption however, so discussions will continue next week".

And once again, countries around the world who thought of themselves as friends and allies of the USA are considering how they will fight back. "Our trade policy is going to be dictated by nationalists who would probably pursue more tariff actions rather than trade agreements". Or jack up the tariffs even higher on the countries that still must pay them.

The European Union has threatened to hit big-name U.S. brands such as Harley Davidson motorbikes and Levi's jeans with import duties.

If Trump does impose steep tariffs on foreign steel and aluminum, it will put the WTO in an awkward position.

Countries and companies may seek tariff relief. But analysts still worry about the fallout from the tariffs. Its rules allow countries to determine their own national security threats and protect vital national industries.

"We'll be imposing tariffs on steel imports and tariffs on aluminum imports".

Yesterday, Speaker of the House Paul Ryan called on Trump to drop plans for the new tariffs.

If the WTO threw out the USA tariffs, the president - already critical of WTO rulings against America - might be tempted to pull out of the organization.

Using national security as a pretext to limit imports of South Korean steel is "unjust", Trade Minister Paik Un-gyu said in a statement Friday expressing his "displeasure" at the move.