Tokyo - There’s a risk of a global trade war should President Donald Trump decide to restrict imports of steel, according to Japan’s leading mills group, which warns any new US curbs on the metal may provoke a tit-for-tat response from others that could drag in other products.
There’s concern about the potential for the spread of protectionism if Trump acts, Kosei Shindo, chairperson of Japan Iron and Steel Federation, told reporters in Tokyo on Monday.
A trade fight beyond steel could happen if countries retaliated in other areas, such as farm products, Shindo said.
The US administration has pledged stringent new measures to protect local steel producers against overseas rivals as Trump seeks to deliver on campaign-trail comments that the trade is unfair. The potential for restrictions comes even as figures from China - which makes half of global supply - show that overseas sales have dropped sharply in recent months.
“If other countries respond with products other than steel, that would be opening a Pandora’s box,” Shindo said, noting that the European Union has already said it will consider retaliation if the US takes action.
“We are concerned about the possibility that a chain of protectionism would happen.”
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