Trade remedies for steel and aluminum were long overdue

Robert E. Scott

Robert E. Scott Senior Economist and Director of Trade and Manufacturing Policy Research, EPI

President Trump said today that he has decided to impose tariffs of 25 percent on all steel imports and 10 percent on aluminum imports, promising to sign the measures next week. Trade remedies for steel and aluminum were long overdue. Trump promised quick action after announcing investigations of the national security threats imposed by steel and aluminum imports nearly a year ago. Delays worsened the import crisis for thousands of U.S. steel and aluminum workers, many of whom are facing layoffs and plant closing announcements.

The crisis in steel and aluminum trade is driven by the development of massive amounts of excess production capacity, which has resulted in import dumping by China and a number of other countries singled out in the Commerce Department’s reports on its “section 232” investigations into the impact of imports of steel and aluminum products on national security. In its reports, which presented tariffs as one of three optional responses, the department found that unfair steel and aluminum imports “threaten to impair the national security.” In addition to China, other key countries identified in the Commerce reports included Brazil, South Korea, Russia, Vietnam, and 6 others in steel; and Hong Kong, Russia, Venezuela, and Vietnam in aluminum.

Now that the tariffs have been announced, the United States should work with other nations to develop coordinated responses to unfair trade in these products. This announcement should mark the beginning, rather than the end, of efforts to develop coordinated global responses to the problems of excess capacity in steel and aluminum trade.

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Reposted from EPI

Posted In: Allied Approaches

Union Matters

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Sam Pizzigati

Sam Pizzigati Editor, Too Much online magazine

National Rifle Association chief Wayne LaPierre has had better weeks. First came the horrific early August slaughters in California, Texas, and Ohio that left dozens dead, murders that elevated public pressure on the NRA’s hardline against even the mildest of moves against gun violence. Then came revelations that LaPierre — whose labors on behalf of the nonprofit NRA have made him a millionaire many times over — last year planned to have his gun lobby group bankroll a 10,000-square-foot luxury manse near Dallas for his personal use. In response, LaPierre had his flacks charge that the NRA’s former ad agency had done the scheming to buy the mansion. The ad agency called that assertion “patently false” and related that LaPierre had sought the agency’s involvement in the scheme, a request the agency rejected. The mansion scandal, notes the Washington Post, comes as the NRA is already “contending with the fallout from allegations of lavish spending by top executives.”

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Corruption Coordinates

Corruption Coordinates