Donald Trump,
President of US, has announced to start investigation those countries that steel export to
the US and imposed heavy tax duties on imports. The purpose of this order is to
halt countries from flooding cheap steel and undermining local suppliers. The
president said that China was mostly related to steel exporting but it “nothing
to do” with Beijing. He just wanted to guard US National Security.
Suddenly US
steel makers shares has increased after hearing this news in market; However,
Asian Steel makers do not so much pay attention to this news. Previously, The
US government has tried to protect national steel makers from cheap foreign
steel by the World Trade Organization; Nevertheless, Donald Trump
administration says it has had slight effect.
This investigation will fall
under the US Trade Expansion Act of 1962, through this president levied
limitations on imports because of national security. Mr. Donald Trump said,
“Steel is very instrumental for our military and economy and we should not
dependent about steel on foreign countries.” Most nations know china
is the largest national steel producer that produces more steels than required
and selling excessive steels to overseas at low prices.
In the past, Japan and
South Korea have also been blamed of dumping steels. The US Commerce Secretary
said,” Chinese exports has responsible for 26% of the United State steel market
and steels exports had also risen. These low price steel massively reduce profits
in the American steel industry. Previously, Mr. Donald Trump has blamed Chine
of suppressing the yuan to make its exports more competitive as compared
American goods.
0 comments:
Post a Comment