Trump’s Trade Tariffs Will Only ‘Impoverish,’ Australia Says

Mr Trump believes the tariffs will safeguard American jobs, but many economists say the impact of price increases for users of steel and aluminium, such as the auto and oil industries, will destroy more jobs than curbs on imports create.

Last week, Trump announced hefty new national security tariffs for imports of steel, at 25 per cent, and 10 per cent for aluminum are on their way to boost US manufacturers.

He acknowledged that other countries might retaliate by imposing tariffs of their own on American goods – as the European Union has threatened to do for blue jeans, motorcycles, and bourbon – but insisted the effects would be small. He also said it would divide the USA and its allies.

“The EU has been a close security ally of the US for decades”. He invoked the rarely-used Section 232 of the 1962 Trade Expansion Act, which authorises the Secretary of Commerce to conduct comprehensive investigations to determine the effects on USA national security of any imports.

European trade commissioner Cecilia Malmstrom said the US measures would have a negative impact on transatlantic relations and on global markets.

United States trading partners are clamoring to be exempted from the looming USA import taxes on steel and aluminum. “It’s one that we’re going continue to engage with all levels of the USA administration on”, Trudeau said during an event in Barrie, Ont.

“The United States has an $800 Billion Dollar Yearly Trade Deficit because of our “very stupid” trade deals and policies”, Trump said in a tweet earlier in the day.

German Foreign Minister Sigmar Gabriel looks on during a press conference on February 22, 2018 in Berlin. One convincing argument is that the tariffs, which are created to provide a shield for the USA steel industry, will increase steel prices and thus backfire on U.S. consumers and manufacturers that use steel, including the vehicle industry.

The EU steel industry groups are also critical. None of those Republicans supported Donald Trump’s positions on trade. “Millions of people addicted and dying”. 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.

The protectionist policy will be made official in the next two weeks, White House officials said Sunday, as the administration defended the decision from critics in Washington and overseas.

He warned a new wave of protectionism would quickly hit Germany as a trading nation.

“It would be quite severe if we were to face additional import duties to ship the cars into the USA – the Germans in particular are very, very exposed”, Arndt Ellinghorst, the head of global automotive research for advisory firm Evercore ISI, told CNBC Monday.

The end result could erode the president’s base of support with rural America and even the blue-collar workers the president says he trying to help.