Monday (June 12) US President Trump said it would take major legislative action on steel dumping and soon take legislative action on dumping of aluminum and steel.

Glencore CEO Ivan Glasenberg said US President Trump has accused Chinese manufacturers of exporting cheap aluminum and steel due to government subsidies. Glumpen argued at a Bloomberg television forum at the St. Petersburg International Economic Forum that Trump would have a practical point of view on China's handling of China because China was a major importer of US goods.

Glasenberg pointed out that "China to the loss of the price to the power plant sales of coal, aluminum production enterprises have been subsidized." Steel, aluminum industry survey will help to revive the United States rely on shale gas and other low-cost energy goods manufacturing The "US shale gas is the cheapest energy in the world and they are potentially competitive in aluminum production," he said.

Trump since the beginning of this year, began to start his country steel, aluminum industry survey, to determine whether the threat to the US manufacturing industry, and even a threat to national security. While China's trade situation will be in the state of being monitored. Trump wrote on Twitter: The survey results will be announced in June, if necessary, when the United States will take appropriate measures.

In 2016, the United States since the global imports of steel 29.96 million tons, down 14.8%, the amount of 22.3 billion US dollars, down 26.4%. The main sources of US steel imports are Canada, Brazil, South Korea, Mexico, Japan and Germany, while China's exports to the US steel is very limited. According to Chinese statistics, in 2016 China exported 1.17 million tons of steel to the United States, accounting for 1% of China's total exports, the amount of 1.7 billion US dollars, accounting for China's overall steel exports 3%. According to US statistics, in 2016, the United States imported 789,000 tons of steel from China, accounting for 2.6% of the total US imports, the amount of 910 million US dollars, accounting for 4.1% of total imports of steel.

On April 20 this year, US President Trumpe signed a memorandum of understanding at the White House in accordance with Article 232 of the 1962 Trade Extension Act, requiring the Ministry of Commerce to give priority to investigating whether steel imports threaten US national security.

The US Department of Commerce launched a survey in April on whether foreign imports of steel products undermined US national security. Ross has said that the Ministry of Commerce will submit to President Trump at the end of June a report on the impact of steel imports on national security. If it is determined that steel imports threaten national security, Trump will have 90 days to decide whether to use the "232" compulsory license to adjust imports or take other non-trade-related measures. After the start of the 232 survey, the US Department of Commerce has issued a statement saying that the investigation will involve production capacity, labor, investment, research and development and other factors to determine whether the import of steel threat to the safety of the United States. The US Department of Commerce also said that after a thorough investigation, if confirmed that steel imports have any threat to national security, Commerce Secretary Ross will propose a report including action measures recommendations. According to the relevant bill, Trump has the right to use the adjustment of tariffs and quotas and other means to control imports.

Since the start of the 232 survey, some countries and regions, as well as the relevant domestic associations and the responsible person on the 232 survey sound. Canadian Prime Minister Trudeau May 27, at the G-7 summit, Canadian Prime Minister Trudeau Trudeau and the United States President Trump conducted a 30-minute discussion, urging the settlement of steel, timber and aerospace industry as soon as possible bilateral trade disputes.

In fact, if the imposition of import restrictions on US trading partners, the risk of trade retaliation, lead to a new wave of trade protectionism, and then make many of the US competitive industries hurt. The US government to use "232", will give the US auto industry and its workers the adverse impact will be far more than the import restrictions on the benefits of the US steel industry.

At present, the US steel prices have been significantly higher than the US auto manufacturers competitors market price, so that the US auto manufacturers in an unfavorable competitive position. Large tariffs on imported steel products will further widen the spread, increase the cost of production of US cars, make US domestic car and truck sales decline, the US auto exports and employment will also be reduced. It is recommended that the Trump government not take unilateral taxation measures or other trade restrictions so as not to weaken the competitiveness of the US auto industry. Preventing the importation of foreign steel will force US manufacturers to obtain raw materials only from domestic mills, but do not necessarily meet the relevant operational requirements, which may lead to a decline in the quality of equipment production and the risk of safe operation. At the same time, import restrictions will push the US domestic steel prices, while other countries manufacturers can purchase cheaper steel raw materials, which will damage the international competitiveness of US manufacturing.