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.

Government of Trump is try to activate the previously policy. Trump have signed two executive policies on April 1st, 2017. The policies demanding to investigate the US trade deficit and dumping steel policies from other Countries.

Dumping steel includes steel plates, steel line pipes, and steel profiles.

According the reports Axios, the current of White House have inside disagreements on trading policies plan. But still there were news for this:

Steel products such as line pipes, steel plates, steel profiles, casing pipe and tubing, and aluminum will be the target dump steel product, other commodities such as household appliances, may also become the target products. If the survey resulted in tax increase, this possibly increase the American consumer’s price. And it’s harmful to partial US company’s share price, especially the companies rely on Chinese cheap steel products. But for some US manufacturing company may have the benefit for this.

US Try to save American manufacturing industries and turn the business around.

Trump will save American manufacturing industries and turn the business around, for the unfair trade action. A White House official said this is a part of actions. US government will take actions according by the survey result. The official said US government may not reflect for this, but also maybe will charge the additional tax.

In other words, the action will possibly much bigger than steel products dumping content reported from New York Times.

At present, US Secretary of Commerce is implementing this policy. The survey result will come out at the end of April possibly.

The penalty to dumping steel will make big benefit for some US companies.

Axios said that if this investigation lead to a penalty to trade partners, it will be the great success for Ban Nong, Miller and other economic nationalists. On the other hand the Glodman Sachs is possibly to oppose these trade penalties.

WL Ross & Co established by Ross, then purchased by Invesco. They stated that the company will create a joint-investment company to purchase China’s steel assets. Then the company will connect with the China Baowu Iron and steel Group and other companies. They will establish a company called Four-Source investment management company. Its headquarters at Shanghai, and invest 5.8 billion dollars to 11.6 billion dollars to the bad performance of iron and steel assets.

Chinese delegation expressed “Interest in reduce the trade surplus”.

Yesterday, US president Donald-Trump and Chinese President Xi Jinping held a summit meeting. Ross said the two countries made an agreement to have a plan “Hundred Days Plan” which discuss the trading problems finally. He said, the biggest success of the two days conference is that Chinese delegation expressed “interest in reducing the trade surplus”.

Ross served as US Secretary of Commerce for only 40 days. People even didn’t know how much he knew about the four-source investment management company before leaving his company. But Jeaneen Terrio, WL Ross spokeswoman said he has nothing to do with it. Terrio said this deal was sponsored by Stephen Toy. And she said, the time of announcement of the transaction have no purpose to rush together with the Trump’s diplomatic conference.

The investment have no connections with government officials.

“This joint venture have no relationship with meeting of Ross and Chinese government officials，” said James Rockas, the Commerce Department spokesman. About this deal, Ross have nothing news from internal, he added.  He is not the joiner of this joint venture.

China is the stand support in steel manufacturing industries”.

“China obviously is the stand support in steel manufacturing industries”, Toy expressed in a statement. He said the participation of the steel giants Baowu Group will be an advantage.