Canada, Mexico, and the European Union have already vowed to retaliate against products they import from the US.

EU Commissioner for Trade Cecilia Malmström commented on the decision as well, stating, “Today is a bad day for world trade. We did everything to avoid this outcome. Over the last couple of months I have spoken at numerous occasions with the US Secretary of Commerce. I have argued for the EU and the US to engage in a positive transatlantic trade agenda, and for the EU to be fully, permanently and unconditionally exempted from these tariffs. This is also what EU leaders have asked for. Throughout these talks, the US has sought to use the threat of trade restrictions as leverage to obtain concessions from the EU. This is not the way we do business, and certainly not between longstanding partners, friends and allies. Now that we have clarity, the EU’s response will be proportionate and in accordance with WTO rules. We will now trigger a dispute settlement case at the WTO, since these US measures clearly go against agreed international rules. We will also impose rebalancing measures and take any necessary steps to protect the EU market from trade diversion caused by these US restrictions.”

Meanwhile, NAFTA partners were also reportedly surprised by the announcement given the ongoing status of renegotiating the trade agreement. Mexico responded to the news by announcing retaliatory tariffs on products including pork belly, apples, grapes, blueberries and flat steel.

Meanwhile, South Korea, Argentina, Brazil and Australia have been given import quotas in the Section 232 investigation.

IREPAS affirms its belief that free and fair trade is one of the few unambiguously good principles and that it is based on the idea of comparative advantage. Most commodities are freely and fairly traded around the world and this allows resources to flow to their point of best use. Countries and companies that have embraced this message have thrived and prospered, whereas those that have tried to close themselves off from this trend have not. Competition increases efficiency, and serves customers and the public in general. IREPAS always has and will always continue to support free and fair trade in steel.

1. A global 24 percent tariff on all steel imports from all countries.
2. A tariff of at least 53 percent on steel imports from Brazil, China, Costa Rica, Egypt, India, Malaysia, Korea, Russia, South Africa, Thailand, Turkey and Vietnam.
3. A quota on all steel products from the aforementioned countries equal to 63 percent of their exports to the US in 2017. All other countries could export 100 percent of their 2017 export levels to the US, but would still be subject to tariffs.

Additionally, if implemented, the tariff or quota options would be in addition to any duties already in place.

The US DOC also recommends a process be put in place to allow US companies to request exclusions from specific steel products if the US steel industry lacks sufficient domestic capacity to replace the imports, or for national security reasons. Any exclusions granted result in changed tariffs or quotas for the remaining products to maintain the overall effect.

President Trump has until April 11 to make a decision.

The US DOC expects each of these remedies to increase US domestic steel production from its current capacity utilization rate of 73 percent to 80 percent.