Published: Wed, March 14, 2018
World | By Paul Elliott

Trump's auto-tariff talk bullying, European Union says

Trump's auto-tariff talk bullying, European Union says

The United States bought just 1.1 per cent of China's steel exports previous year compared with 12 per cent for South Korea and 5 per cent for Japan, according to the US International Trade Commission.

The Trump administration is seeking to invoke Section 301 of the U.S. Trade Act to allow president to impose import tariffs to sanction unfair trade practices.

Trudeau's comments came during a tour of Canadian steel-producing towns, where he is showing support for workers in the industry.

The bloc says that it's a close ally of the USA and therefore any import levies on national security grounds are unjustified.

Last year, Europe imported 40 million tonnes of steel.

U.S. President Donald Trump has signed an executive order calling for fresh tariffs on steel and aluminum imports.

That is where President Trump's complaint is right.

There's still a lot of resentment about the shoddy treatment that steelworkers and retirees received during the U.S. Steel bankruptcy protection proceedings.

"Right now, half the country thinks that the president is a lunatic, and they have very little confidence in his rational approach to issues, so they are anxious about politics as an issue", said Auth.

The U.S. tariff for cars, at 2.5 percent, was lower than the European Union rate of 10 percent, but its rate of up to 25 percent on trucks was higher.

But in wartime, aluminum and steel are essential to make tanks, planes and other weapons.

"The last thing both sides of Atlantic need now is protectionism or escalation of Tariff increase".

While there will be initially "higher import prices and substitution toward higher domestic prices", that will be followed by disinflationary effects when tariffs diminish demand, said Derek Holt, an economist at Scotiabank in Toronto. Late past year, Washington approved big tax cuts for businesses, and investors sent stocks surging. Based on current import penetration, eliminating all imports - which these tariffs will not do - might in time create 50,000 additional jobs.

It is these worrying turns of events that, in our view, have led the market to reassess the chance of a global trade war. US primary production of aluminum rose steadily from the post-war era until around 1980, when it began a steady decline.

"These measures could make a significant impact on the economic and cooperative relationship between Japan and the USA, who are allies", said Japan's foreign minister, Taro Kono.

After speaking to Prime Minister Malcolm Turnbull of Australia, Trump tweeted: "We don't have to impose steel or aluminum tariffs on our ally, the great nation of Australia!"

It has also lined up 2.8 billion euros of USA products, from bourbon to motorcycles, on which to impose tariffs so as to "rebalance" trade flows.

In early 2002, then-President George W. Bush imposed steel tariffs of up to 30 percent on imports of steel in an effort to shore up domestic producers against low-priced imports. If China is found guilty of infringement, the subsequent punishments from the USA could inflict more pain on the Chinese economy.

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now. and United States Steel wasn't one of them!

If President Trump's Section 232 tariffs follow the same path that President Bush's Section 201 tariffs did, the new tariffs regime could end up gutted, and reduced to "a watered-down talking point" - useful on campaign stumps, but of little use in boosting USA steelmakers' profits.

The US House Ways and Means Committee Chairman Kevin Brady told reporters that Trump is serious about countering China's alleged intellectual property theft.

Retaliatory tariffs, which are sure to be in the offing, would drive up consumer prices, churning up inflation and leaving USA consumers with diminished buying power. The construction industry would take the biggest hit.

The country remains open for a dialogue to reach an understanding with the USA and is talking to other countries to learn about measures they are considering, according to Azevêdo.

The trade in steel between Canada and the pretty much balanced, so Canada could respond with its own tariffs on American steel and aluminum.

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