Trump spoke with Canada's Trudeau about tariffs, NAFTA talks: White House

Trump spoke with Canada's Trudeau about tariffs, NAFTA talks: White House

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.

Should Trump's tariffs stay in place for the long term, it is expected that the US steel and aluminum industry will benefit, with under-capacity mills increasing output and idled plants restarting. Here is Dr. Je Hyun-jeong from the Center for Trade Studies and Cooperation at the Korea International Trade Association to analyze what the U.S.' new tariff policy is all about.

"It will only bring disaster to China and the United States and the world", Zhong stated, in the wake of Donald Trump's decision to impose a 25 percent import duty on steel and 10 percent on aluminum. Their version stripped out some of the conditions won by USA negotiators, such as increased intellectual property protections for pharmaceuticals.

Vertical Group announced a big downgrade of U.S. Steel stock from hold to sell this morning, reports (subscription required).

A trade war isn't going to level that field. Why should the economic well-being of a few come at the expense of the many?

"These tariffs are a really bad idea", said James Smith, chief economist at Parsec Financial Management Asheville, North Carolina.

Cars and electronics are largely the fuel for Japan's $69 billion trade advantage, America's second largest trade deficit, after China's.

Joseph Galimberti says Canada has to work very quickly to identify possible attempts to circumvent the USA tariffs by sneaking steel in through Canada and must be prepared to act to stop this. Their reach is in almost every sector of the USA economy - and that gives the tariffs a wide and worrying reach.

Eighty percent of the economists predicted a small increase in inflation from the trade policy, while the remainder saw no effect. In a meeting with officials from Korean steelmakers on March 9, the government said that it would consult with the discuss tariff exemptions or reductions.

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Experts say Canada could be the country hit hardest by the tariffs.

Develop an efficient process for US companies to file exceptions for product exclusions. "Because, in the end, unfair trade undermines us all".

"In some places, trade has been blamed for the pains of globalization, others use it as a scapegoat and insist that we can hide behind walls and borders", EU Trade Commissioner Cecilia Malmstrom said at a conference in Brussels on Monday.

"There are no winners in a trade war", Mr Zhong said. If anything, by hurting downstream industries like vehicle and equipment manufacturers, the new import taxes will probably kill more factory jobs than they save.

What happens to global growth if there's a trade war?

There are also fears that the USA could implement quotas. To put that into perspective, that's about $470 billion - roughly the size of Thailand's output.

Europe exports around €5 billion (US$4 billion) worth of steel and €1 billion worth of aluminium to the United States of America each year, and the commission estimates Trump's tariffs could cost some €2.8 billion. "But we are kind of collateral damage".

The U.S. economy, boosted by a $1.5 trillion tax cut that Trump signed past year, is on a solid footing and the unemployment rate of 4.1 percent is the lowest since 2000.

While the tariffs have been introduced under the pretext of national security concerns, UK Steel claims only around three per cent of steel in the US is used for defence, and many see the move as politically motivated (a congressional seat in Pittsburgh, home to US Steel, is now up for grabs). "So, the economy is set to accelerate and no one will be able to tell how much more it could have grown without the tariffs".

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