Reasons Why Trump's Tariffs Would Hurt American Workers

Reasons Why Trump's Tariffs Would Hurt American Workers

European Commission President Jean-Claude Juncker has warned retaliation was inevitable, with the bloc also faced with the task of calculating what the knock-on effect on the global steel industry will be.

The greenback was hit by heavy selling in early trading, after US share prices plunged on Thursday on Trump's announcement of the plan to impose tariffs of 25 percent on steel imports and 10 percent on aluminum imports.

"The EU will react firmly and commensurately to defend our interests".

Does Trump realize that it will be American companies that will pay that tariff on steel, which will drive up the cost of cars and trucks and farm machinery and other products? Bown, who's a fellow at the Peterson Institute for International Economics, says the US already has trade restrictions on Chinese imports of these products, so the new tariffs put in place for national security reasons will largely hurt USA allies. German Foreign Minister Sigmar Gabriel described the administration's reasoning as "incomprehensible". The EU has been a close security ally to the U.S. for decades. "There should be no doubt about that in Washington".

In a statement in Brussels, the European Commission chief Jean-Claude Juncker said that the EU "will react firmly and commensurately to defend our interests" in response to tough United States steel and aluminium tariffs. "When it comes to a time when our country can't make aluminum and steel ... you nearly don't have much of a country". American agricultural exports, like soybeans, are thought to be particularly exposed. He asserted that the rise of China economically "was directly equal to the date of the opening of the World Trade Organization". Analysts at UBS said Europe would have a good chance of winning, but that could take 18 months.

"The potential for escalation is real, as we have seen from the initial responses of others", he said in a brief statement issued by the WTO. Other nations from whom we import steel are hardly foes. The US then lifted those tariffs, under threat of sanctions on oranges from Florida and textiles from North Carolina.

Trump's announcement caught investors off guard and raised fears about a tit-for-tat retaliation from China and other major United States trading partners. They're also concerned that steel that may have gone to the United States will instead flood into their markets.

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According to a New York Times report Thursday, even White House advisers were "bitterly divided" on how to proceed with the tariffs, expressing worries about possible trade retaliation from other countries.

Affected countries aren't likely to take a big economic hit lying down.

"We continue to seek clarification", said Japanese Trade and Industry Minister Hiroshige Seko.

An executive order in this regard would be signed next week, Trump said after a meeting with executives of steel and aluminium companies yesterday.

"Such measures will hit Turkish importers, producers and exporters". This section of the law gives the US Commerce Secretary the right to investigate whether certain imports pose a threat to national security.

Not all of Trump's fellow Republican politicians agreed with his trade war talk.

South Korean trade minister Kim Hyun-chong has been in the United States since February 25, the trade ministry said. It imports 13 percent from Brazil, 10 percent from South Korea, 9 percent from Mexico and 9 percent from Russian Federation, according to a Department of Commerce report from December 2017. President Trump today announced stiff tariffs on imports of those materials.

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