Local Steel Company Owner Disagrees With New Tariff
- Author: Anthony Vega Mar 05, 2018,
Mar 05, 2018, 0:46
US allies, seeing their industries threatened, responded with bafflement and dismay. Our industries work together.
DONALD Trump has threatened to impose new tariffs on European Union cars as anxieties escalate over a possible trade war that the US President has said would be a good thing. Ross claimed in an interview with CNN that concerns about the tariff's affect on the US economy are "rubbish".
And it's unlikely to register much with the steelworkers of Pennsylvania and Indiana. He doesn't seem to think in terms of prioritizing allies.
The European Union has has drawn up a hit list of U.S. products from bourbon to Harley Davidson motorbikes on which to apply tariffs if Mr Trump follows through with the plan to apply global duties on aluminium and steel.
The Can Manufacturers Institute, a collection of multiple noteworthy beer and beverage makers, said in a public letter addressed to Trump it collectively produces 96 billion cans per year. Hey, how is the Commerce Secretary supposed to know?
"It's good for the whole world if China prospers".
In a note to investors yesterday, Investec Ireland said the move - part of Mr Trump's America First strategy - has been widely condemned on the global stage, and has received criticism from some within the U.S. also.
Photo A mill of Salzgitter AG, a German steel producer.
Trump's actions "could lead to other trading partners taking similar actions and could ultimately weaken the global trade conventions, like WTO rules, more generally", according to a Goldman Sachs Group Inc. research note Friday. The reality is America's steel mills have a modest employment base (maybe 140,000) because of modern production techniques, not foreign competition.
"If the European Union wants to further increase their already massive tariffs and barriers on US companies doing business there, we will simply apply a Tax on their Cars which freely pour into the US", Trump said on Twitter on Saturday. "More expensive steel and aluminum will not simply raise the price of cars and trucks", the group, which represents the U.S. operations of global vehicle manufacturers, pointed out. There is also a significant threat for retaliation from other countries towards American-made products. "We must protect our country and our workers".
Businesses that see the cost of goods rise have three options to make up the losses: cuts costs in other areas, simply absorb the cost and accept lower profit margins, or pass the costs onto consumers. Canadian officials have been making them for 10 months. German producers account for about 4% of United States steel imports. "As soon as he exempts one country his phone starts ringing from the heads of state of other countries".
The Canadian government is employing a strategy a bit like that used for NAFTA, making the Canadian case relentlessly, talking to many USA actors, trying to work with allies who would divert Mr. Trump to another path - in this case, an exemption for Canada.