Donald Trump and Theresa May clash over looming trade war
- Author: Zachary Reyes Mar 05, 2018,
Mar 05, 2018, 21:10
Markets around the globe were shaken.
President Donald Trump on Monday dangled the possibility of lifting the new steel and aluminum tariffs he's imposed if NAFTA is renegotiated to terms more favorable to the US. The policy might be made official this week.
Trump's new attack on European automakers is mostly a direct threat at Germany, which exported $23 billion in cars to the United States in 2016, according to data aggregated by the Massachusetts Institute of Technology. Graham says "China is winning and we're losing with this tariff regime".
The Trump administration also cited national security interests for implementing the tariffs, saying the military needs a domestic supply for its tanks and ships.
The two US trading partners have threatened retaliation unless they are exempted from the planned tariffs, which have rattled financial markets. Mr. Juncker of the #european union also expressed his displeasure warning the EU would retaliate by imposing more duties on American traders in the region.
Trump is expected to sign a formal order for the tariffs in the coming week or the following week at the latest, after all legalities are finalised, Navarro said.
Trump announced last week that he plans to impose a 25 percent tariff on imported steel and a 10 percent tariff on imported aluminum.
The S&P 500 and Nasdaq rebounded from losses of 1 percent or more to close higher. One bright spot, however, is US Steel, which climbs 6%.
President Trump explained his announcement in an early-morning tweet on Friday. But steel buyers expect to see their manufacturing costs climb.
Knowing China's M.O., Manchin "welcomes" Trump's plan.
"Canada's 40 per cent of the (American aluminum) market".
Commerce Secretary Wilbur L. Ross Jr. said the announcement shouldn't have been shocking given Mr. Trump's rhetoric on trade during the 2016 campaign, when he repeatedly criticized multilateral pacts such as the North American Free Trade Agreement. The speaker is "extremely anxious about the consequences" and is urging the White House "to not advance with this plan", according to a statement issued by his office.
India had won two trade disputes against the USA in steel until now but Washington had not fully implemented the WTO recommendations in the second dispute of 2006.
"Jason Furman, former chairman of the Council of Economic Advisers under President Obama, and now an economics professor at Harvard, told the BBC the proposed tariffs were" a very costly and inefficient way to help a small number of people".
While promising to act "firmly", the European Union, which sees itself as a global counterweight to a protectionist-leaning Trump, made no mention of retaliation but spoke of counter-measures that confirm with World Trade Organisation (WTO) rules.
"I know that there are a lot of ministers from a lot of countries that have been talking with the president, they've been talking with me, they've been talking with others".
"Example, when we are down $100 billion with a certain country and they get cute, don't trade anymore-we win big".
- United States stocks regain some of their losses.
Stocks will start the week with the S&P 500 index and Dow Jones back below their 50-day moving averages. He said the United States vehicle market is not as critical for Germany as it was five or ten years ago, while China is now the number one foreign market. "No more", he wrote.
The move is likely to increase tensions with China, whose top trade official Lui He is in Washington for trade talks. "The president has announced that this will happen this week".
"I'm not going to provide a commentary on the Trump administration's trustworthiness", Mr Ciobo said.
Brady said he and others would "continue to make the case to the White House about a smart approach that really narrowly targets unfairly traded products".