Tariffs trigger condemnation
South Korea, Japan among allies calling for exemptions
Business groups and trading partners around the world reacted sharply to US President Donald Trump’s decision to impose tariffs on steel and aluminum imports on Friday, warning of damage to relations amid industry calls for retaliation.
Japan said the move would have a “big impact” on its close ties with the United States.
Yoshihide Suga, Japan’s top government spokesman, said the move could harm the global trading system and the entire world economy and said Tokyo will urge the US to give the country an exemption.
Trump on Thursday pressed ahead with the imposition of 25 percent tariffs on steel imports and 10 percent for aluminum, though he announced exemptions for Canada and Mexico and said exceptions could also be made for other allies.
The European Union, Brazil and South Korea also said they should not be targeted or would seek exemptions.
South Korea, a key Washington ally, is the third largest steel exporter to the US, after Canada and Brazil.
“We should prevent a trade war situation from excessive protectionism, in which the entire world harms each other,” Trade Minister Paik Un-gyu told a meeting with steel-makers.
In Germany, the economic engine of the EU — the US’ biggest trade partner by volume — the German Steel Federation warned of “drastic consequences” to the German and European steel industry.
Hans Juergen Kerkhoff, president of the federation, was quoted by German news agency DPA as saying Trump’s decision threatens to divert a large amount of steel and cause a spiral of protectionism. He urged quick decisions to cope with the situation.
Brazil, the largest economy in Latin America, reacted to the US decision “with great concern” on Thursday, warning the measures will severely damage Brazilian exports and hurt business flows with the US.
Brazil’s National Confederation of Industry estimates the tariffs will cause the Brazilian industry an annual loss of $3.15 billion.
In Sydney, Australian Prime Minister Malcolm Turnbull sounded confident of getting favorable treatment as Trump spoke of Washington’s strong relationship with Australia, a major exporter of iron ore though it exports little steel and the US is not a major customer.
India’s steel ministry said last month that US import tariffs were expected to lead to a loss of $130 million in exports which were expected to total 333,656 tons for the year ending on March 31.
In the US, a recent study by Trade Partnership, a Washington-based consulting firm, estimated Trump’s new tariffs on steel and aluminum would result in a net loss of 146,000 US jobs after accounting for positive impacts on US steel and aluminum producers.
“I disagree with this action and fear its unintended consequences,” House Speaker Paul Ryan said shortly after Trump’s announcement of the tariffs.
Senate Finance Committee Chairman Orrin Hatch expressed similar concerns about the proposed tariffs, saying: “Slapping aluminum and steel imports with tariffs of this magnitude is misguided. It undermines the benefits that the new tax law provides and runs counter to our goal of advancing pro-growth trade policies that will keep America competitive in the 21st century global economy.”
Alabama’s automakers and soybean farmers could be among those hurt in any retaliation to Trump’s tariffs.
The state, which voted overwhelmingly for Trump in the 2016 election, exports the most cars of any US state to China, and much of its soybean crop.
“Agriculture is going to be paying the price for the protection of the steel and aluminum industries,” said Herb Karst, a spokesman for Farmers for Free Trade.