>> A showdown over steel looming next week as President Donald Trump takes his America First battle cry to the G20 meetings in Hamburg. The Axios Newsletter reporting Trump plans to slap stiff tariffs on imported steel, to fight with the White House says is wholesale dumping on US markets.
Trump on Friday giving a taste of that tough line, which critics say could spark a trade war after talks with South Korean leader, Moon Jae-in.>> And I have called on South Korea to stop enabling the export of dumped steel. These would be important steps forward in our trading relationship.
>> Breaking Views columnist, Gina Chon is on the story.>> The commerce department has embarked on a study to assess whether steel imports pose a threat to national security, that would give the administration broad powers to impose tariffs. Some of the numbers that are being bandied about are in the 20% range which would have huge implications for the market.
There definitely is a problem with over capacity in the steel industry, and China is the main culprit. We may have been flooding the market with steel products. There's a sense that they actually would need to cut 300 million tons of production to actually eliminate the excess capacity.>> The expected tariff's in line with Trump's campaign promise to bring back jobs for US steel workers.
But Chon says that tariffs risk backfiring, as happened in 2002 when President George W Bush took similar steps, and some 200,000 workers lost their jobs in steel-dependent industries like autos.>> That actually led to more job losses in various sectors than the steel industry employed at the time.
And that's the collateral damage that this administration could be facing, if they go down that same path.>> Trump cueing up tariffs, just as data shows steel dumping on a down swing, with US steel imports plunging 25% over the past two years. Sources telling Reuters Trump will likely hold off on any immediate action.
First putting the screws on foreign leaders at the G20 talks.>>