The US Department of Commerce is recommending to US President Donald Trump to impose a 24% tariff on steel and aluminum imports from China, Russia, Hong Kong, Vietnam, and Venezuela.
The US Commerce Secretary, Wilbur Ross, proposes the tariff as a means to addressing a global production glut. The measures will be designed to prevent sales via third countries. Alternatively, Ross proposing the introduction of import quotas.
The measures are linked to US national security; President Donald Trump will consider the measures and should decide on trade policy by April.
The measure would undermine multilateral trade and could trigger a trade war among World Trade Organisation members. China’s Ministry of Commerce reacted on Saturday suggesting the possibility of retaliation.