Trump must steel himself for huge backlash on levies
With Donald Trump’s love of the unstable, it is clear to see why people wonder if he is a patsy for despots. His admiration for Vladimir Putin, Philippine leader Rodrigo Duterte, China’s President Xi Jinping and Turkey’s Recep Erdogan, speaks volumes about his style of leadership. Now given his decision to impose tariffs on steel exports from the UK, Canada, Mexico and the EU, it makes you wonder whose side he is on? Trump is single-handedly destroying America’s global leadership, friendships and interests.
The President had initially exempted the UK and the rest of his allies from the 25% tariff on steel and 10% levy on aluminium he unveiled in March. But now, after several weeks of negotiations, his administration decided to go ahead with the charges as the talks were taking too long. Trump’s aides claim the US must hit countries with tariffs to stop Chinese firms from flooding markets with these metals and, in turn, protect American workers.
It is nothing but a fantasy but more importantly it provides an alarming insight into Trump’s mentality.
His protectionist strategy must serve as a wake-up call to the UK government who now need to show some real mettle when agreeing to a new free trade agreement with the US once it leaves the EU.
The post-brexit “global Britain” Whitehall wants to create is on a dangerous collision course with the “America First” approach the US leader has adopted.
As stakes run high, it is clear the “special relationship” between the UK and States, which has historically seen deep political and business ties formed, means nothing to the Trump administration.
Any hint of an agreement with Britain that threatened American jobs would see any possible deal sunk without trace.
As an island nation, foreign trade is vital to the UK economy helping to sustain millions of its jobs.
Currently, around 15% of British exports are shipped across the Atlantic to the States – the biggest percentage for any country.
And as Brexit looms ever closer, it is important UK ministers do all they can now to placate the current tensions with the US.
The UK has long been a bridge between America and the continent and it must use that position to avert a trade war that would hit business confidence and investment.
It may yet prove, as some experts predict, the one thing that will see Trump relax his tariffs is the hurt it will cause to his own people.
His policies will undoubtedly raise the prices Americans pay for what they buy while also reducing the competitiveness of the US economy.
They will succeed where its traditional adversaries have failed in uniting much of the rest of the world in opposition to America.
And they will reduce the States’ legitimacy and power by demonstrating its lack of competence.
The sooner they are revised, the better off we all shall be.
If all else fails the world could always retaliate against the one thing Trump cares about most – himself.
Swingeing tariffs brought in against his foreign businesses would soon see him reverse his policy.
So if he refuses to back down, maybe they will slap an extortionate tariff on green fees at Trump Turnberry golf course in Scotland.
He’ll soon be feeling under par.
His policies will surely raise prices that people in America pay