China criticizes Trump's tariff plan
- Author: Leroy Wright Mar 03, 2018,
Mar 03, 2018, 11:49
His announcement came only after an intense debate among his top aides.
US -based aluminum producer Alcoa Corp., which has operations in Canada, said certain countries should be excluded from the duties. The dollar fell against most currencies, dropping to its lowest in more than two years against the yen, as Trump's tariffs proposal raised prospects of a damaging trade war. And that's the idea.
But home appliance maker Electrolux said it was delaying a $250 million expansion of its plant in Tennessee as it was anxious United States steel prices would rise and make manufacturing there less competitive.
United States President Donald Trump is targeting foreign metals, threatening to impose a 25 per cent tariff on steel.
BSC analysts said the short-term impact for Russian steel stocks should be limited and said the measures were a "zero issue" for aluminum producer Rusal 0486.HK .
While the President did not say this to reporters on Thursday, the official said Mr. Trump's tariff decision will be "an across-the-board tariff with no exclusions", applying to all other nations - and that it will only have positive economic effects.
The thing about tariffs is they cut both ways.
Amid a global stocks selloff and irate reactions from trading partners and U.S. industry groups, administration officials have moved to defend the policy, arguing that the tariffs would result in negligible price increases for durable goods and consumer items.
OR wheat growers are especially vulnerable to tariffs right now. In other words, retaliation.
"If the European Union wins, it could impose more economic sanctions on the USA", said Peter Holmes, a trade expert at the University of Sussex.
Asian stock markets yesterday extended a Wall Street sell-off, while Wall Street and European shares tumbled in intra-day trading. But Canada isn't alone in its concern. "If the European Union does not take action, our steel industry will pay for the U.S.'s protectionism".
Protectionism has roots that go back to the Revolutionary War. And in order for those goods to become successful, they needed to be less expensive than foreign goods.
"If broadly applied, these tariffs will have a downstream impact on every sector and will raise the stakes for other countries to take retaliatory measures that will hurt America's exporters", RILA VP of global trade Hun Quach said in the statement. People for and against don't tend to fall into neat categories.
If a trade war does indeed break out, it could threaten a strengthening global economy, but investors seemed to question how far Trump will end up going throughout afternoon trading.
Sen. Sherrod Brown, D-Ohio, applauded the tariffs as well.
Auto price hikes may be uneven, however, depending on the proportion of domestic versus imported metal used by vehicle manufacturers.
Where you may really feel the difference would be in products made completely out of aluminum or steel.
And economists say tariffs such as those Trump proposes will hurt the U.S. companies and workers he has said he wants to protect. This isn't a new criticism, particularly of China. Steel tariffs imposed in 2002 cost 200,000 hardworking Americans their jobs. He said the European Commission would take the matter to the World Trade Organisation. In fact, the rise of China, economically, was - if you look at it - directly equal to the date of the opening of the World Trade Organization.
Think of the WTO as a referee.
Section 232: Now we're getting wonky.
The Commerce Department earlier released a report saying rising imports of steel threatened national security. Ross recommended that Trump impose new import restrictions.