Saturday, 19 January, 2019

How will Trump tariffs work? Will they likely succeed?

Economic adviser Gary Cohn is said to have warned the U.S. president that introducing hefty tariffs on steel and aluminum imports could undercut the economic benefits of a sweeping tax overhaul How will Trump tariffs work? Will they likely succeed?
Melinda Barton | 13 March, 2018, 01:40

But the White House has repeatedly undermined its own legal case, including by intimating that the tariffs would be held over Canada and Mexico as some kind of negotiating tool to extract NAFTA concessions.

As markets fell on news that Wall Street favorite Gary Cohn, Trump's top economic adviser, had resigned from the White House in protest at Trump's trade decision and global partners vowed retaliation, Mr Ross tried to calm fears of a trade war. As Gary Cohn joins Hope Hicks in resignation, it seems as though the Trump administration has failed to fill in the shoes of top government officials.

Cohn is the fourth high-profile Goldman alumni to leave the administration. However, stock markets in Asia rallied as traders said the tariffs could have been worse. The other is Lawrence Kudlow, an economic analyst at CNBC who has criticized those same tariffs.

Mr Liddell joined the administration in January 2017 and now serves as the White House's director of strategic initiatives. "He is a rare talent, and I thank him for his dedicated service to the American people". "Increased costs will make our industry less competitive and harm American workers, consumers, and our economy".

"It looks a little nasty when you watch it on the news, or as I sometimes call it, the Fake News", Trump said.

Nope. Chinese metal imports to the United States are already heavily restricted. He tweeted that he "will be making a decision soon" on replacing Cohn.

Navarro had limited contact with Trump world until early in the campaign, when Kushner was drawn to his book, "Death by China", while researching China policy.

Signaling a sharp departure from a decades-long US-led drive for more open and less regulated trade, Trump declared that America had been "ravaged by aggressive foreign trade practices".

By offering countries a way to escape the tariffs, Trump might have eased the risk of a destructive trade war.

Cohn's departure has raised concerns about who within the White House will seek to temper Trump's nationalistic instincts.

During the election, Trump's attacks on trade deals found great resonance in industrial areas of Pennsylvania, Michigan, Ohio, and Wisconsin - key states that Trump won, sometimes surprisingly, en route to his Electoral College win. "They have total, total control over him", Trump said of Cruz.

They helped develop the tariff plan Trump sprung on the economic world last week, to the surprise and consternation of Cohn and others.

When he initially decided on the plan, he reportedly said that the 25 percent tariff on foreign steel and 10 percent tariff on foreign aluminum would apply to all countries, because otherwise, everyone would ask for an exemption.

Yes. Canada and Mexico could lose the exemption - and be slapped with the tariffs - if negotiations to overhaul the North American Free Trade Agreement collapse. He said only that the reprieve remains in place for now and that NAFTA is important to economic and national security.