Monday, 16 July, 2018

Stocks wobble as Trump's top economic adviser departs

Donald Trump US president Donald Trump
Nellie Chapman | 08 March, 2018, 18:23

We are on the losing side of nearly all trade deals.

In a separate letter, Iowa's congressional delegation, including two Republican senators, warned that the tariffs would hurt the state's farmers and manufacturing.

That was after Mr Trump said European Union trade rules make it "impossible" for USA firms to do business with the bloc.

Among experts it is hard to find voices defending Trump's tariff and trade war policy as being good for U.S.jobs.

A White House official said that the impending tariffs could exclude Canada, Mexico and a clutch of other countries based on national security.

Navarro says the tariffs would go into effect within 15 to 30 days.

But he said it will protect American steel manufacturers from going out of business by limiting competition from cheap steel sent from overseas.

Welles Orr, a former assistant US Trade Representative under President George H.W. Bush and a trade consultant, said the steel and aluminum industries are not immune to global backlash. "Such practices hurt working people and cheat companies that produce in the USA", the federation's president, Richard Trumka, said in a statement. It's also not clear whether American steel mills and aluminum smelters can increase production enough to match the overseas supply that would be lost. It dropped $1.45, or 2.3 percent, to $61.15 a barrel on Wednesday after the Energy Department reported that US oil production rose last week. "He is looking out for American companies and American workers with trade deals that are just not fair". Trade is a cornerstone issue of Trump's economic agenda, along with tax cuts and deregulation, he said.

Boosted by a global trade boom in 2017, China's exports grew at the fastest pace since 2013 and served as one of the key drivers behind the economy's forecast-beating 6.9 percent expansion past year. "We cannot see how the European Union, friends, and allies in North Atlantic Treaty Organisation, can be a threat to national security in the United States", she said. President Donald Trump has approved higher tariffs on Chinese-made washing machines and some other goods and is considering other possible controls.

Trump proposed slapping tariffs on the import of steel and aluminium to the United States in an effort to protect the domestic industry against alleged "dumping".

But tough US trade talk past year is now turning into action.

It has already reduced steel exports to the U.S.to a trickle, and while aluminium shipments account for around 10 percent of its total global exports of the metal, the number is still small compared with China's total exports, according to ING economist Iris Pang.

CHINA TRADE: China's exports surged in February, partly due to distortions related to the timing of lunar new year holidays, while its politically sensitive trade surplus widened amid mounting tension with Washington.

Trump is signaling his intention to rewrite the political map by pushing a policy that - however distasteful it seems to Wall Street or costly for consumers - will be popular with a narrow slice of voters he needs in order to get a second term.

Cohn's departure has given the president's "nationalist" advisers like arch-China skeptic Peter Navarro and commerce boss Ross the whip hand.

Action that does not include exemptions risks retaliatory tariffs on U.S. exports - not least by Canada and Europe - and complicates already tough trade talks on Nafta.

One supporter of President Trump's plan is N.C. Steel Services Vice President Mark Parrish.