Major Asian nations yesterday reacted sharply to US President Donald Trump’s decision to impose tariffs on steel and aluminum imports, warning of damage to relations amid industry calls for retaliation.
Japan said the move would have a “big impact” on the nations’ close bilateral ties, while China said it was “resolutely opposed” to the decision and South Korea said it could file a complaint with the WTO.
Trump on Thursday pressed ahead with the imposition of 25 percent tariffs on steel imports and 10 percent for aluminum, although he announced exemptions for Canada and Mexico, and said exceptions could also be made for other allies.
Photo: AFP
China, which produces half the world’s steel, is to assess any damage caused by the US move and “firmly defend its legitimate rights and interests,” the Chinese Ministry of Commerce said.
The tariffs would “seriously impact the normal order of international trade,” the ministry said.
The EU, Brazil and Argentina said they should not be targeted or would seek exemptions, and both Japan and South Korea said they would also ask to be made exceptions.
South Korea, a key Washington Asian ally, is the third-largest steel exporter to the US after Canada and Brazil.
The US is the world’s biggest importer of steel, purchasing 35 million tonnes last year.
Of those imports, South Korea, Japan, China and India accounted for 6.6 million tonnes.
“We should prevent a trade war situation from excessive protectionism, in which the entire world harm each other,” South Korean Minister of Trade, Industry and Energy Paik Un-gyu told a meeting with steelmakers.
Trump in January ordered tariffs on solar panels and washing machines imported to the US.
Exports of these products, and steel and aluminum, make up less than 1 percent of South Korea’s total exports, Nomura Securities Co Ltd economist Kwon Young-sun said.
“But broader US curbs and countermeasures from Europe or China could derail the exports environment going forward,” Kwon said.
Trade tensions between China and the US have risen since Trump took office.
China accounts for only a small fraction of US steel imports, but its massive industrial expansion has helped create a global glut of steel that has driven down prices.
Chinese steel and metals businesses urged the government to retaliate against the US, citing imports ranging from stainless steel to coal, agricultural products and electronics.
The dispute has fueled concerns that soybeans, the US’ most valuable export to the world’s second-largest economy, might be caught up in the trade actions after Beijing launched a probe into imports of US sorghum, a grain used in animal feed and liquor.
“The cost of a trade war will be tremendous and it will make everyone unhappy,” Tokyo-based SMBC Nikko Securities Inc chief economist Junichi Makino said in a report.
In Sydney, Australian Prime Minister Malcolm Turnbull sounded confident of getting favorable treatment as Trump spoke of Washington’s strong relationship with his nation, a major exporter of iron ore, but which exports little steel.
“I was pleased to see the president acknowledge the strong points I have been making to him. There is no case for imposing tariffs on Australian steel,” Turnbull told reporters.
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