Defense Official Says Executive Branch Carefully Considering Potential Tariffs and Quotas
Defense officials in the Trump administration are treading cautiously in determining whether to take any tariff or quota action against other countries, Under Secretary of Defense for Acquisition, Technology, and Logistics Ellen Lord said Oct. 4 during the Bureau of Industry and Security annual export control policy conference. The administration launched Section 232 investigations in April into whether steel and aluminum imports are a threat to national security, and affirmative findings could result in tariffs or quotas on those products. The investigations, led by the Commerce Department, remain under interagency review after Commerce indefinitely postponed its self-imposed deadline of June 30 for concluding the steel investigation (see 1705240034).
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“There are important checks and balances where there’s ongoing dialog when we talk about tariffs, when we talk about quotas, and what they would do in terms of second- and third-order effects on our partners and allies. We have a strategic advantage internationally in that our partners and allies give us a critical advantage when we talk about Russia, when we talk about China,” Lord said. “We do not want to unintentionally hurt the industrial bases of our allies with tariffs or quotas being put on.” She added that there have been some “very dynamic discussions” in the executive branch about protecting U.S. industry while not “adversely impacting” allies. “I think you’ll see more of that to come,” she said.
After Lord spoke, Commerce Secretary Wilbur Ross said members of the U.S. steel and aluminum industries have complained to Commerce about “huge volumes” of excess global steel and aluminum production and capacity. “Much of this results from foreign government subsidies and other unfair practices,” he said. “A large portion, but not all, comes from China.” He said Commerce continues to review the impacts of the overcapacity of such metals on U.S. industry and national security.