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US steel and aluminium imports face big tariffs, Trump says | US steel and aluminium imports face big tariffs, Trump says |
(35 minutes later) | |
President Donald Trump has said he will sign off on steep tariffs on steel and aluminium imports next week, hitting producers like Canada and China. | |
Flanked by US metals executives at the White House, he said a 25% tariff would be slapped on steel products, and a 10% tariff would be imposed on aluminium. | |
Mr Trump tweeted that the US was suffering from "unfair trade". | Mr Trump tweeted that the US was suffering from "unfair trade". |
The US imports four times more steel than it exports, and is reliant on steel from more than 100 nations. | |
What's the context? | What's the context? |
During his presidential campaign, Mr Trump said that foreign countries were "dumping vast amounts of steel all over the United States, which essentially is killing our steelworkers and steel companies". | |
And since taking office, Mr Trump said cheap imports from China were harming the viability of US industry. | |
China isn't the only country to export steel to the US - 110 countries and territories do so. And China is only the 11th biggest biggest exporter to the US - Canada, Brazil, South Korea, Mexico and Russia are the five biggest. | China isn't the only country to export steel to the US - 110 countries and territories do so. And China is only the 11th biggest biggest exporter to the US - Canada, Brazil, South Korea, Mexico and Russia are the five biggest. |
Last year, the president ordered an investigation by Secretary of Commerce Wilbur Ross into "whether steel imports threaten to impair the national security", drawing a link between economic prosperity and the country's security. | Last year, the president ordered an investigation by Secretary of Commerce Wilbur Ross into "whether steel imports threaten to impair the national security", drawing a link between economic prosperity and the country's security. |
Mr Ross' report was published last month. It said US national security was indeed threatened, and made three recommendations, one of which was putting in place a 24% tariff on all steel imports. | Mr Ross' report was published last month. It said US national security was indeed threatened, and made three recommendations, one of which was putting in place a 24% tariff on all steel imports. |
It also proposed adding a 7.7% tariff to all aluminium imports, among other options. | It also proposed adding a 7.7% tariff to all aluminium imports, among other options. |
What did Trump have to say? | |
In Thursday's announcement, Mr Trump promised to rebuild the American steel and aluminium industries, which he said had suffered "disgraceful" treatment from other countries for decades. | |
"And when it comes to a time when our country can't make aluminium and steel - and somebody said it before and I will tell you - you almost don't have much of a country, because without steel and aluminium your country is not the same. | |
"We need great steel makers, great aluminium makers for defence." | |
Citing China, Mr Trump said "we haven't been treated fairly by other countries". | |
He spoke as Chinese economic adviser Liu He, a friend of Chinese President Xi Jinping, visited the White House. | |
Mr Liu was due to meet separately with one of the US president's top economic advisers, Gary Cohn. | |
Mr Trump's announcement was slightly delayed on Thursday amid reports of internal wrangling over the issue among White House aides. | |
More than a dozen metals executives, including representatives from US Steel Corp, JW Aluminum, Century Aluminum, Arcelor Mittal, Nucor, joined Mr Trump. | |
On Thursday morning, he tweeted: "Our Steel and Aluminum industries (and many others) have been decimated by decades of unfair trade and bad policy with countries from around the world. | |
"We must not let our country, companies and workers be taken advantage of any longer. We want free, fair and SMART TRADE!" | |
Trade war in the White House | |
By Tara McKelvey, BBC White House reporter | By Tara McKelvey, BBC White House reporter |
The president wants to be seen as tough on trade and China, and so do many of his top officials: Pete Navarro, a trade adviser who's tipped for promotion, has hawkish views. | The president wants to be seen as tough on trade and China, and so do many of his top officials: Pete Navarro, a trade adviser who's tipped for promotion, has hawkish views. |
So does Harry Harris, the president's pick for ambassador to Australia. Still, some advisers thought the president should take it slow. | So does Harry Harris, the president's pick for ambassador to Australia. Still, some advisers thought the president should take it slow. |
Aides huddled behind closed doors and in a hallway on Thursday morning, and the president's announcement was postponed. | Aides huddled behind closed doors and in a hallway on Thursday morning, and the president's announcement was postponed. |
The scheduling conflict reflected a bigger clash: a fight between hardliners and those who approach trade in a more cautious manner. | The scheduling conflict reflected a bigger clash: a fight between hardliners and those who approach trade in a more cautious manner. |
Meanwhile, the boss was right where he liked to be: in the eye of the storm, and everyone was waiting for him to speak. | Meanwhile, the boss was right where he liked to be: in the eye of the storm, and everyone was waiting for him to speak. |