Dow dips more than 200 points after President Trump's 'trade wars' tweet
- Author: Zachary Reyes Mar 03, 2018,
Mar 03, 2018, 3:42
The tariff won't just impact jobs, but the economy as a whole. U.S. Steel stock jumped 5% on Thursday in anticipation of a tariff announcement.
The list and the other possible measures will be discussed at the next commissioners meeting, on Wednesday (7 March).
However, they would have to apply to selected steel grades from all countries and so would hit producers from China, India, Russia, South Korea or Turkey.
Industry insiders were less restrained. A lot of China's steel makes its way to the United States indirectly.
Therefore, the heads of the National Tooling and Machining Association and the Precision Metalforming Association were among many steel users that warned of the damage that could be done by the import duties.
The Thomson Reuters European steel equities index fell 1.7 percent on Friday, while London Metal Exchange aluminium prices were trading largely flat at around $2,150 a tonne. A deep irony, given the national security basis for the tariffs is that under U.S. law, Canada is actually considered a part of the U.S. Defense Industrial Base. So we're going to build our steel industry back, and we're going to build our aluminum industry back.
Trump's announcement sent the stock market into a tailspin that began Thursday and continued into Friday. Canada has already threatened retaliation should the US move forward.
Australia's trade minister said the measures risked triggering retaliation from other economies and could cost jobs, on Friday, while China predicted harm to trade if other countries followed the example of the United States.
"I encourage the president to carefully consider all of the implications of raising the cost of steel and aluminum on American manufacturers and consumers".
Brazil, a major exporter of steel to the USA, expressed "enormous" concern.
Overseas, Trump's words brought a stinging rebuke from the president of the European Commission.
General Motors isn't concerned either.
"Frankly, when you look at all the plants, the vehicle plants, automobile plants that moved down to Mexico for no reason whatsoever, except we didn't know what we were doing", Trump said. "That's why taking a mixed material approach on some of these is a great hedge as well".
"We will react swiftly, firmly and proportionately, on the basis of the rules that are in place, agreed by all global trade partners and the World Trade Organization", a commission spokesman told journalists.
Carmakers and other users of the metals anxious about retaliatory tariffs by other countries that might affect the cost of their finished products.
In a blistering series of morning tweets, he said he would to impose "reciprocal taxes" on all imports from trading partners that have duties on American exports.
Canada is the largest supplier of both products to the U.S. It's responsible for more than half of U.S. aluminum imports and about 17 percent of steel imports. These new tariffs add to the 169 measures already applied to steel imports and the two placed on aluminum imports. "Not only will it not protect the American worker, it will strongly hurt the American consumer".
The report Thursday accused China of moving away from market principles and pledged to prevent Beijing from disrupting global trade.
At home, tariffs result in higher prices, making it more expensive to manufacture and consume products made with steel and aluminum. These measures could include tariffs or import quotas and can be enacted quickly, Winterstein said.
Trump announced the tariffs despite lobbying of his administration by foreign governments, and while Chinese President Xi Jinping's top economic adviser is in the country on a mission to defuse tensions.