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No decision yet on steel tariffs

Trump campaign promise slowed

WASHINGTON — President Donald Trump pledged during the campaign to help U.S. factory workers by slapping tariffs on foreign steel. But his long-awaited decision on the issue is running behind schedule and administration officials are leaving plenty of wiggle room on what direction he’ll take.

Commerce Secretary Wilbur Ross initially hoped to finish a report on tariffs last month, but his department has been holding off as the Pentagon weighs in about impact of steel tariffs on national security. The delay is an example of the difficulty Trump faces in delivering on his ambitious policy agenda — on taxes, health insurance and more — as quickly as he told voters he could.

White House officials have hinted that tariffs still are coming. Asked on “Fox News Sunday” over the weekend if the president planned to impose sanctions on foreign steel, White House chief of staff Reince Priebus responded: “My guess is that he will because he promised he would.”

There are trade-offs from taxing foreign steel that include higher prices for consumers and manufacturers that rely on steel, as well as strained relationships with trade partners. The possible risks became more apparent last week at the summit of the 20 leading rich and developing nations in Germany. The summit ended with a declaration that governments would develop “concrete policy solutions that reduce steel excess capacity” by November, but the U.S. position was aggressive enough that there were concerns about a potential trade war.

Supporters of the tariffs say the move would help crack down on excess steelmaking by China. Opponents say it would raise prices for consumers and manufacturers that turn steel into cars, furniture and other products.

Scott Paul, president of the Alliance for American Manufacturing, said that some officials and advocacy groups have slowed the process to fine-tune the policy, while others are hoping that a slower pace of discussions will derail the debate. He said he trusts that “at the conclusion of the process, there will be a well thought-out rationale for whatever relief is provided.”

In April, Trump asked the Commerce Department to launch an investigation into whether foreign steel imports posed a threat to national security, on the grounds that the American military relies on steel for airplanes, ships and other equipment. Steel also goes into roads, bridges and other critical infrastructure.

The investigation reflects the administration’s determination to use existing trade laws more aggressively to combat what it sees as unfair practices.

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