Trade war!
In the wake of President Donald Trump’s threat to implement a 25% tariff on steel imports and a 10% levy on aluminum, countries and trade blocs are already issuing their own series of warnings.
On Wednesday, the European Union (EU) said that it would impose duties on peanut butter, orange juice, cranberries, and even bourbon should the U.S. president apply tariffs on steel and aluminum. EU Trade Commissioner Cecilia Malmstrom published a provisional list of U.S. products that would endure higher tariffs. The list, she says, will be made public “very soon.”
Malmstrom also noted that Brussels could take the issue to the World Trade Organization (WTO), and even go as far as working with other trading partners to retaliate against Washington.
Here is what she said (via CNBC):
“There are indications that President Trump, very soon, in the coming days, we don’t know for sure, may sign off a decision on import tariffs of 25 percent on steel and 10 percent on aluminum, which he announced on the March 1.
“This is done under something that’s called Section 232, which refers to internal or national security. We have serious doubts about that justification, we cannot see how the European Union’s friends and allies in NATO can be a threat to national security in the U.S. We find that assumption deeply unjust.
“The motivation of the U.S. is an economic safeguard measure in disguise, not [a] national security measure. That means the EU is entitled to make use of a WTO safeguard agreement to rebalance benefits that we have given to the U.S. in the past.
“It is very hard to speculate what will happen [in the U.S.]. … I truly hope this will not happen.”
Ugh.
This is further proof that government-managed trade should be condemned at all times. It doesn’t matter who is in charge, Republicans or Democrats, the White House routinely imposes protectionist measures that impact Americans. A trade war doesn’t help either side.
Indeed, this is only making headlines around the world because it is Trump. The press hardly made a big deal about former President Barack Obama’s tariffs. That said, it’s a good thing that the president is getting pushback by many Republicans and conservatives.
And, yes, Wilbur Ross, you are trying to “blow up the world” with your tariffs.
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