- 04 Mar 2018 02:09
#14893440
Trump announced a tax on global imports of steel (25%) and aluminium (10%) by citing security concerns, which allows a presidential decision without congress approval.
Chinese steel has already been largely eliminated from the US market due to punitive taxes introduced a couple of years ago. Thus, these measures aim US allies, especially Canada, Mexico, Brazil, the EU, Japan and South Korea.
The EU, Canada and Brazil have already said that there would be counter measures if the US tax were to come into force. The EU intends to tax imports of bourbon, motorcycles and jeans. In response to which Trump has tweeted that he would slap a 25% tax on imported cars. But he has threatened that before.
This looks very much like a rash decision by the president and Wilbur Ross didn't look happy announcing it.
Even if this were to save a few jobs in the US steel and aluminium industries, it risks putting in danger more jobs in industries using steel and aluminium since their costs will increase. Senior republicans like Paul Ryan have appealed to the president to reconsider his decision (Ryan represent Milwaukee, Wisconsin, where Harley Davidson is based).
The decision has been condemned by politicians around the world and even the IMF has been uncharacteristically critical of the US decision. If the tit for tat were to continue we could slide into global recession like in 1929. The major actors will probably halt the escalation, but nothing can be taken for granted as we seem to enter uncharted waters with an unpredictable president.
Chinese steel has already been largely eliminated from the US market due to punitive taxes introduced a couple of years ago. Thus, these measures aim US allies, especially Canada, Mexico, Brazil, the EU, Japan and South Korea.
The EU, Canada and Brazil have already said that there would be counter measures if the US tax were to come into force. The EU intends to tax imports of bourbon, motorcycles and jeans. In response to which Trump has tweeted that he would slap a 25% tax on imported cars. But he has threatened that before.
This looks very much like a rash decision by the president and Wilbur Ross didn't look happy announcing it.
Even if this were to save a few jobs in the US steel and aluminium industries, it risks putting in danger more jobs in industries using steel and aluminium since their costs will increase. Senior republicans like Paul Ryan have appealed to the president to reconsider his decision (Ryan represent Milwaukee, Wisconsin, where Harley Davidson is based).
The decision has been condemned by politicians around the world and even the IMF has been uncharacteristically critical of the US decision. If the tit for tat were to continue we could slide into global recession like in 1929. The major actors will probably halt the escalation, but nothing can be taken for granted as we seem to enter uncharted waters with an unpredictable president.