G20 Discusses Rolled Metal Excessive Amid Tensions Over US Actions

European officials said the G-20 leaders will discuss the metal overproduction at a summit in Germany as tensions escalate over US President Donald Trump's plan to use Cold War-era law to restrict steel imports for national security reasons.

Trump began investigating the matter in April, and as a result, diplomats and trade experts say there are risks associated with the application of rules that undermine the global trading system and trigger worldwide retaliation in industries outside of metallurgy.

The White House confirmed last week that Trump plans to use the results of the investigation as a catalyst to urge G-20 leaders to cut overcapacity in metallurgy, the world's second largest industry after oil and gas.

The US recommendation on possible new tariffs will be released some time after the G20 summit, which began on Friday. The US is conducting a similar study on aluminum tariffs.

While tariffs on both products will target China primarily, US allies fear they will bear the brunt of the measure, as Chinese steel exports are already heavily dependent on US restrictions, but Canada and Mexico are likely will be exempt from tariffs.
In addition, the call for national security is virtually banned in the World Trade Organization by the arbiter of international trade rules, as it is largely seen as a way of waging economic wars, citing arbitrary defense concerns.

The European Union has already pledged to strike back if it is hit by tariffs on US steel imports.