Trump slaps tax on steel and says: Trade wars are good!
DONALD Trump last night threatened a transatlantic trade war with proposed steel tariffs as the EU declared it would ‘not sit idly’ as he made the changes.
The President announced penalties of 25 per cent on imported steel and 10 per cent on aluminium imports to protect American manufacturers.
But he was unfazed by the backlash yesterday as he said ‘trade wars are good’ before adding it would be ‘easy to win’.
Britain’s steel industry body warned the proposed hike in tariffs would have a ‘significant impact’ on the country. JeanClaude Juncker, President of the European Commission, responded at trade group UK Steel, said of with fury as he said: ‘If the Americans the plans: ‘This would be a unilateral, impose tariffs on steel and and extremely blunt, aluminium, then we must treat approach to what is a complex American products the same way. global problem of overcapacity in
‘We must show that we can also the steel sector. take measures. This cannot be a ‘These measures would cause unilateral transatlantic action by serious damage to the prospects the Americans.’ of many steel producers here.
He added: ‘We will not sit idly ‘We trust the Government would while our industry is hit with unfair push for and fully support a robust measures that put thousands of response from the EU.’ European jobs at risk. The EU will Mr Trump has long accused react firmly and commensurately China and other countries of to defend our interests.’ unfair trade practices including
Richard Warren, head of policy steel dumping – exporting steel to another country at below the normal price – and campaigned for the presidency on a promise to bring back US steelworkers’ jobs.
Earlier this month his commerce secretary Wilbur Ross recommended tariffs after investigations found dependence on steel and aluminium imports threatened US national security and weakened its economy.
Mr Trump summoned industry bosses to the White House where he said he would levy the tariffs next week. His plans brought a stinging rebuke from across the world, including officials in Australia and Canada. Bosses in the US also fear it will drive up prices for American consumers.
But the President remained defiant, telling his Twitter followers: ‘When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win.
‘Example, when we are down $100billion with a certain country and they get cute, don’t trade any more – we win big. It’s easy!’
The World Trade Organisation chief last night said he was concerned by Mr Trump’s plans.
The WTO’s director- general Roberto Azevedo said: ‘The potential for escalation is real.
‘A trade war is in no one’s interests. The WTO will be watching the situation very closely.’
A spokesman for the European Commission said retaliatory measures have been prepared.
He said: ‘We are going to respond swiftly, firmly and in a proportionate way. We have been preparing for this situation for a long time and ... we are ready.’
About 15 per cent of Europe’s steel exports last year went to the US, or about five million tons of steel, worth around £5billion.
Financial analysts Jefferies said the actual measures could be more complex than an across-theboard 25 per cent tariff for steel.
Last night the President said he planned to impose ‘reciprocal taxes’ on imports in an attempt to reduce to US trade deficit.
He tweeted: ‘When a country taxes our products coming in at, say, 50 per cent, and we tax the same product coming into our country at ZERO, not fair or smart. We will soon be starting RECIPROCAL TAXES so that we will charge the same thing as they charge us. $800billion trade deficit – have no choice!’