Trade war over steel will be counterproductive, even for the US

AFTER weeks of debate between economic nationalists and the free traders at the White House, Trump administration officials are expected to decide this week if they plan to impose restrictions on steel imports that could take the form of either new tariffs or import quotas, or most likely, something in between.

Employing a somewhat obscure section of the Trade Expansion Act of 1962, US President Donald Trump issued four months ago an executive order requesting the Department of Commerce to investigate whether steel imports constituted a threat to national security. After the Commerce Department issues its findings and recommendations, Mr Trump would have to decide on whether to placate his anti-globalisation electoral base by embracing a protectionist approach or whether to respond to the pressure from US economic partners and avoid a new and costly trade war. The United States - the world's largest importer of …