G20 leaders will discuss steel overcapacity at this week’s summit in Germany, European officials said, as tensions rise over U.S. President Donald Trump’s plan to use a Cold War-era law to restrict steel imports for national security reasons.
William Reinsch, a fellow at the Stimson Center said if the threat of tariffs are used to pressure members of the G20’s forum on steel overcapacity – set up last year – to tackle the problem, a good outcome could yet prevail.
He warned however, that a broad U.S. claim to national security would put global trade on a slippery slope.
“It just opens the door to everyone else to do same thing, not just on steel,” Reinsch said.
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