U.S. President Trump has ordered to launch an investigation on countries, which exports steel to United States so as to raise the prospect of new tariffs on imports.
This investigation has been carried out in order to stop other countries from over flooding artificially cheap steel in the U.S. However, China is the country which is associated with this practice, but, Trump said it has “nothing to do” with it and was about protecting US security. China is the largest national producer of steel, but in the past, Japan and South Korea have also been accused of dumping.
The statement made shares of steelmakers rise sharply in the US. As investors appeared to shrug off the news, share market in Asia also climbed up.
Previously, US government has tried to shield national steelmakers from foreign steel through WTO, but Trump administration said it had little impact. So, under the US Trade Expansion Act of 1962, the investigation has been carried out that let president to protect national security by imposing restrictions on imports.
“Steel is critical to both our economy and our military,” U.S President Trump said. “This is not an area where we can afford to become dependent on foreign countries,” he added.