riponadvancespecial.com

World

How Trump's Tariff Punch Hurt His Pro-Business Agenda

Share
Donald Trump has said a formal announcement on the tariffs would be made next week

Canada's steel sector could be wounded by US tariffs even if the country is exempt from the 25 percent duty promised by President Donald Trump, as cheap steel previously sold south of the border floods into Canada, industry leaders said on Friday.

"When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win", he tweeted.

Hejazi says Canada is too financially dependent on the US and adds he would like to see Canada trade more with other countries. Other countries, including China, could retaliate, too. "The administration's desire to challenge other countries' trade violations is an important goal for free and fair trade, but a broadly applied tariff could spark a potential trade war that zaps consumer spending and American exports". "When we are down $100 billion with a certain country and they get cute, don't trade anymore - we win big". Finally, maybe, the American steel industry will come back.

Relying on a rarely used section of United States trade law, President Trump announced a second round of new tariffs, after approving the first tariffs of his presidency this January.

The tariff won't just impact jobs, but the economy as a whole.

If the tariffs bring more expensive steel and aluminum, companies that rely on those materials may pass some of those costs to consumers.

He views the tariffs as a way to pressure trading partners into submission and wipe away the long-standing trade deficit.

European Commission chief Jean-Claude Juncker said Friday the EU was drawing up retaliatory measures against leading U.S. brands such as Levi's and Harley Davidson.

On the other hand, McMillan said, if companies decide to eat most of those higher costs, their profit will take a hit, hurting their stock values.

China's Commerce Ministry said it was seriously concerned about Trump's plan. The U.S. then lifted those tariffs, under threat of sanctions on oranges from Florida and textiles from North Carolina.

At the time, the list included not just steel products but also orange juice, apples, sunglasses, photocopiers and other goods.

"This is going to scare markets, but it's not going to scare the Chinese government", Posen said.

Trump told industry executives Thursday he plans to impose a tariff of 25 per cent on imported steel and 10 per cent on aluminum, sparking fears of escalating retaliation between countries.

Mr Trump has lamented the decline of the U.S. steel industry, which since 2000 has seen production drop from 112m tons to 86.5m tons in 2016.

"We believe vital trading partners, including Canada, should be exempt from any tariff on aluminum", Alcoa said in an emailed statement. "What saves one job can jeopardize another".

Perez-Rocha, the Institute for Policy Studies fellow, said: "A full blown trade war is unsafe for both sides".

But Tharren Keith, owner of Des Moines Steel Company, said he doesn't think it's possible.

"We held frank conversations", a White House spokeswoman said. It has been advocating for protection against what it says are unfair trade practices by China. Sasse noted that he would expect Democratic Party lawmakers to set trade tariffs, not Republicans. Susan Shand adapted the story for Learning English.

Section 232: Now we're getting wonky.

Share