Published: Wed, March 14, 2018
People | By Neil Grant

China started the trade war

China started the trade war

"Although we support the administration's goals to protect the U.S. steel industry and steel mill workers, the disparity in numbers demonstrates that U.S. steel-consuming industries contribution a more significant percentage of U.S. GDP and have more at stake with the imposition of these tariffs than the U.S. steel-producing industry", ACA President and CEO William Hanvey, wrote in the signatory of the letter.

Trade Commissioner Cecilia Malmstroem held talks on Saturday with U.S. Trade Representative Robert Lighthizer in an effort to understand Trump's exemptions, but she said she got "no immediate clarity on the exact U.S. procedure".

Trump's tariffs, like his hardline NAFTA demands, have the prospective to turn the internationally integrated auto industry upside down. Our steel industry is in bad shape.

However, WTO does not prevent Europe from maintaining a tariff four times the level that the USA does, on the other's cars. Trump's tariff tantrum is only going to make those cars more expensive for USA consumers. But eventually, increased expenses could make it unprofitable to develop automobiles in the United States and production will move elsewhere. There is obviously no chance of doing this, though, if we are engaged in an absurd cycle of tit-for-tat tariffs with the likes of the EU.

With his March 1 announcement of tariffs on steel and aluminum imports March 1, detailed in a White House ceremony Thursday, President Donald Trump had eschewed advice from a broad range of experts to make a provocative nationalist gesture that will likely do more harm than good for those it's supposed to help. WTO and GATT stopped trade wars, but they didn't reset tariffs at a fair level.

Does the Trump doctrine risk a trade war? We should continue to pursue free trade as a policy, not as a theology that prevents us from acknowledging that there is such a thing as unfair trade. Here's what you need to know. These gains have been enormous for everyone: The expansion of worldwide trade from 1980 to 2005 launched the greatest period of poverty reduction in world history, with a billion people moved out of abject poverty.

Alienating nations around the world, with whom the United States has had long and mutually beneficial relationships is no way to bargain. Vertical notes that similar tariffs on steel imposed by President Bush on imports under Section 201 of the Trade Expansion Act in 2002 ultimately exempted more than 700 different steel products from their effect, "prompting a resurgence in imports" after an initial slump.

We urge the administration to reconsider this action and continue investigating the impact of steel and aluminum tariffs on the USA economy and steel-consuming sectors downstream. The Commission spokesman also pointed to USA import duties of up to 48 percent on shoes, 12 percent on textiles and 164 percent on peanuts. Democrats and Republicans, left and right, have often stood in opposition to them: President Trump and candidate Bernie Sanders being among those who campaigned against them in the last election. "That's why we're impressing upon the American administration the unacceptable nature of these proposals that are going to hurt them every bit as much as they will hurt us", Trudeau remarked pointedly. Those slabs must be imported from Brazil, Mexico and Japan because they aren't available available locally and it's cheaper to import them from overseas than from the East Coast, Rodrigues said. So Europe can continue with its higher tariffs on USA cars, so long as it does the same to Japanese cars.

China's aluminum output is a fraction of steel's size at about 36 million tons a year ago. By going after them, Trump is only making life more hard for corporate America. In contrast, Chinese steel comprises just 2% of all American steel imports. South Korea needs to work with the worldwide community to develop practical measures to tackle Washington's growing trade protectionism effectively and also sharpen the global competitive edge of the local steel industry.

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