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00:00THANK YOU FOR JOINING US. THE TALK OF THE TOWN IS TRADE WAR. AS YOU KNOW, I HAVE PRODUCED A RANGE OF REMEDIES, ALL OF WHICH WERE INTENDED TO PRODUCE THE SAME EFFECT, NAMELY, TO GET THE STEEL INDUSTRY IN THE U.S. UP TO 80% CAPACITY. THAT IS THE BENCHMARK IT NEEDS FOR LONG-TERM VIABILITY. IT ' S IMPORTANT BECAUSE THERE IS ONLY ONE U.S. MANUFACTURER OF THE KIND OF ARMY PLATE -- ARMOR PLATE ON ITS ARMORED VEHICLES. IN ALUMINUM, THERE IS ONLY ONE KIND OF ALLOY NEEDED FOR AEROSPACE, FOR FIGHTER PLANES AND SATELLITES. SO, WE ARE DOWN TO DANGEROUS CIRCUMSTANCES, AND WE REALLY CANNOT LET IT GO. WE UNFORTUNATELY HAVE TO DEAL WITH A GLOBAL PROBLEM ON A GLOBAL BASIS. THE OPTIONS I PRESENTED -- OF THE OPTIONS I PRESENTED, THE PRESIDENT CHOSE ONE, WHICH WAS PUT BROAD TARIFFS ON BROAD PRODUCTS. THERE IS ONLY ONE PRESIDENT, AND HE CHOSE THE OPTION HE FELT WOULD BE MOST EFFECTIVE. QUAKES AS YOU KNOW, WE ARE HAVING ANOTHER ROUND OF NAFTA NEGOTIATIONS. HOW DOES THE PRESIDENT DEAL WITH THAT? HE EXEMPTED CANADA AND MEXICO BECAUSE OF NAFTA. IS THERE ANY PROSPECT THAT WHEN THE PRESIDENT SIGNS SOMETHING NEXT WEEK, HE MIGHT HAVE EXEMPTIONS FOR PRESIDENT -- FOR CANADA AND MEXICO? MR. ROSS: SECTION 201 IS A DIFFERENT SECTION THEN TO 32. ALL OF OUR TRADE AGREEMENTS, NAFTA INCLUDED, HAVE SPECIFIC LANGUAGE GIVING INDIVIDUAL COUNTRIES THE RIGHT TO DETERMINE WHAT FACTORS AFFECT THEIR NATIONAL SECURITY. THE PROBLEM WITH WHAT PRESIDENT BUSH PUT IN WAS THAT THE WTO RULED HE DID NOT HAVE A LEGAL BASIS FOR DOING IT. NATIONAL SECURITY IS A LEGAL BASIS FOR DOING IT. > > YOU SAID EARLIER IN THIS INTERVIEW THAT THIS AFFECTS THE ECONOMIC HEALTH OF THE COUNTRY. IF THE ECONOMIC HEALTH OF THE COUNTRY IS NATIONAL SECURITY, DOESN ' T THAT MEAN THAT ANY COUNTRY COULD SAY, IN ORDER FOR US TO BE STRONGER ECONOMICALLY, WE HAVE TO INVOKE NATIONAL SECURITY AND PUT TARIFFS ON GOODS? > > OTHER COUNTRIES HAVE TARIFFS. HALF OF OUR U.S. TRADE DEFICIT COMES FROM AUTOMOBILES. EUROPE HAS A 10% TARIFF. CHINA HAS A 25% TERRACE. THERE IS NO LEVEL PLAYING FIELD. IT IS NOT JUST STEEL. IN 17 OUT OF THE 21 LARGEST CATEGORIES OF PRODUCT, EUROPE HAS HIGHER TARIFFS THAN WE DO. WE ALREADY ARE FACED WITH FORMIDABLE TRADE BARRIERS, AGAINST WHICH THERE IS VERY LITTLE WE CAN DO. THAT ' S WHAT THIS IS ALL ABOUT, STRENGTHENING THE U.S. ECONOMY, BRINGING BACK THE 100,000 JOBS OR SO THAT HAVE BEEN LOST IN RECENT YEARS DUE TO THESE PRACTICES. > > LET ' S TALK ABOUT THE REACTION SO FAR. THE STRONGEST REACTION WE HAVE SEEN IS FROM PEOPLE WE TRADITIONALLY THINK OF AS OUR ALLIES, THE EU, CANADA. WHAT IS THE CONCERN THAT CHINA COULD BE BENEFITING FROM THIS. CHINA, AS I SAID, IS NOT REALLY THAT AFFECTED BECAUSE THEY DON ' T EXPORT THAT MUCH STEEL OR ALUMINUM IN THE FIRST PLACE. > > WE HAVE TARIFFS AGAINST SOME 35 COUNTRIES RIGHT NOW FOR VARIOUS VIOLATIONS OF ONE PRODUCT OR ANOTHER THAT THEY HAVE PUT FORWARD. WE ROUTINELY ARE IMPOSING TARIFFS ON OUR ALLIES. IT ISN ' T JUST CHINA THAT DUMPS PRODUCT. SO MANY -- SO DO MANY OF THE EUROPEAN COUNTRIES AND OUR ALLIES ELSEWHERE IN THE WORLD. SO, NATIONAL DEFENSE IN THE SENSE OF ALLIES IS THIS THE BRICK QUESTION FROM WHETHER PEOPLE ARE PLAYING FAIRLY IN THE TRADE ARENA. THE PRESIDENT HAS DECIDED THAT THE RIGHT WAY TO ACHIEVE THE OBJECTIVE OF GETTING THESE TWO INDUSTRIES UP TO 80 PERCENT OF CAPACITY IN TERMS OF THE UTILIZATION, THAT IS WHAT WE NEED TO MAKE THEM VIABLE LONG-TERM INDUSTRIES. OF THE MENU OF ALTERNATIVES I HAVE PROPOSED, HE CHOSE THIS PARTICULAR REMEDY, AND THAT ' S WHAT HIS DECISION IS. > > FINALLY, MR. SECRETARY, AS YOU KNOW, THE MOST SENIOR ECONOMIC ADVISER TO PRESIDENT XI JINPING IS IN WASHINGTON NOW FOR NEGOTIATIONS. YOU HAVE COME TO SOME AGREEMENT ON TRADE TO MOVE THINGS FORWARD. WHAT IS THIS GOING TO DO. WHAT ARE THE CONVERSATIONS LIKE IN LIGHT OF THESE TARIFFS? > > I AM SURE THEY WILL BE A TOPIC TO BE DISCUSSED. JUST AS WE HAVE PUT TARIFFS ON OTHER PRODUCTS. THIS IS NOTHING NEW. THIS JUST HAPPENS TO BE BROADER GEOGRAPHICALLY THAN THE TYPICAL TARIFF PROGRAM. AS YOU CORRECTLY POINTED OUT, THE VERY DIRECT IMPACT ON CHINESE EXPORTS TO US IS NOT GOING TO DRASTICALLY AFFECT THE ECONOMY, NOR WAS IT MEANT TO. THESE ARE NOT MEANT TO HURT OTHER COUNTRIES AS MUCH AS THEY ARE MEANT TO BRING JOBS BACK TO THE U.S. AND LABEL -- LEVEL THE

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Wilbur Ross Says Steel Tariffs Are About Jobs and Security

U.S. Commerce Secretary Wilbur Ross discusses President Donald Trump's tariff plans with Bloomberg's David Westin on "Bloomberg Markets." (Source: Bloomberg)

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