Sunday, 23 September, 2018

Trump 'Not Backing Down' on Tariffs, But Softens on Trade War

Donald Trump’s announcements last week drew a sharp reaction from America’s major trading partners including the European Union and Canada. The new import duty is said to be aimed at Chinese steel which is quite often dumped in the US market Trump 'Not Backing Down' on Tariffs, But Softens on Trade War
Melinda Barton | 12 March, 2018, 08:10

Additionally, few Americans agreed with Trump that a trade war is "good, and easy to win".

Trump said he would impose the tariffs - 25 per cent tariff on steel and 10 per cent on aluminum, - to boost US manufacturers.

White House National Trade Council Director Peter Navarro said Monday that President Trump's decision to increase tariffs is to protect national and economic security. "Make no mistake: If the president goes through with this, it will kill American jobs - that's what every trade war ultimately does. It's the wrong way to incentivize the creation of a new & modern NAFTA", Economy Minister Ildefonso Guajardo said on Twitter.

The immediate reaction of major worldwide traders with the U.S. was to declare their intention to retaliate against the United States by imposing their own tariffs on imports from the US.

Videgaray says that only "addressing supply and demand" can the illegal "flow of drugs, cash and weapons going both ways" be stopped.

This came after a tweet Monday in which he had echoed a similar sentiment.

Ryan said Tuesday he's had multiple conversations with President Donald Trump in which he has urged the president to take "a more surgical approach" to instituting tariffs on steel and aluminum imports. 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 president maintained his protectionist rhetoric Monday, saying that he'd consider revoking tariffs on steel and aluminum if a new, "fair" NAFTA is signed.

Trump is holding firm on his threat to slap tariffs of 25 per cent on steel and 10 per cent on aluminum. That totals to a loss of roughly 146,000 jobs, a study by The Trade Partnership says.

The letter doesn't mention any countries as potential targets.

Mexican President Enrique Pena Nieto and President Donald Trump hold a meeting on the sidelines of the G20 Summit in Hamburg, Germany, on July 7, 2017.

But either way, the battle over trade in Washington is not over yet.

All three countries have been mired in trade talks since last August that were sparked by Trump's insistence that NAFTA has been a raw deal for American manufacturing workers.

In 2017, the US imported $151 billion more in goods from Europe than it exported to European Union countries.

Despite the criticism and the facts, Trump isn't backing down.

Despite the Canadian foreign minister's pessimism toward the tariffs last week, Canada's chief negotiator Steve Verheul noted the body had "successes we can point [to]" but ceded there is "more to do" in ongoing negotiations. In another tweet, Trump said Canada must treat American farmers much better. Trump told reporters he will not scrap his plan despite concerns of a trade war. More than six million are employed in businesses, like the auto sector and construction, that use steel and aluminum.

The president added he is right now "100 percent" following through with his plan to impose the new controversial tariffs.

The announcement saw world stock markets plunge, while many U.S. commentators - including from President Trump's own party - raised concerns about potential higher costs for USA manufacturers.