Japan Steel Shall be Affected by US Limits Imported Steel

Commerce Secretary Ross has announced that it will consider making restrictions on imported steel and impose high tax.

The Japanese media reports that US Department of Commerce consider that a large number of imported steel products: oil and gas steel pipe, hot and cold rolled steel coil, and other products have make a threat to national security, President Trump plans to take measures to change the bad condition recently.

US will restrict imported steel from Japan

If the United States take plans into action, the United States will restrict imported steel from Japan. This plan may lead to global trade reduced, the economy will also have a bad impact.

Report said Trump have ordered to investigate imported steel products which damaged to national security and made a report. This action is because of fear that a large number import steel will have bad effects to The US steel companies. And impact the national defense products making. Ross led the investigation and emphasized that “report will be finished soon.”

According by The US policy, that if the import steel products make a threat to national security, the President may take corrective action according to the suggestions of the Ministry of Commerce. Rose said that a large number of imported steel “should consider as the national security issues. The US president will suggest to take corrective measures”. The options include charging high tariffs and other measures.

The US imported steel restriction opposed by other party of WTO.

After receiving the suggestions of the US Department of Commerce, Trump will decide whether to take action. However, import restrictions and high taxes based on US domestic law may be violated The World Trade Organization (WTO) rules, it will be claimed by the involved countries. Although United States may take these hints, forcing the other countries to cutting export steel itself.

According reports, The United States imported steel of 3.1 million tons in March this year. Increased of 25.6% than the last month. In April, imported more than 3 million tons. Most is Canada steel amount is close to 16%, then Russia, South Korea, Brazil, and Japan. China which have excess capacity problem has only accounted for 2%. The US steel production is about 7 million tons per month.

On the other side, Japan export steel to US is about 2 million mt annually, at 2% of US annual production capacity.