Trade war fear over Trump tax on steel
Defiant US president says tariff battles ‘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 US 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’, 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.
Jean-Claude Juncker, European Commission president, responded with fury as he said: ‘If the Americans impose tariffs on steel and aluminium, then we must treat American products the same way. We must show we can also take measures. This cannot be a unilateral transatlantic action by the Americans.’ He added: ‘We will not sit idly while our industry is hit with unfair measures that put thousands of European jobs at risk.’
Richard Warren, policy head at UK Steel, said: ‘These measures would cause serious damage to the prospects of many steel producers here.’
Mr Trump has long accused China and other countries of unfair trade practices including steel dumping – exporting steel 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 studies 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. Bosses in the US fear it will drive up prices for American consumers.
But Mr Trump remained defiant, telling 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. Director-general Roberto Azevedo said: ‘A trade war is in no one’s interests.’
A European Commission spokesman said retaliatory measures have been prepared.
About 15 per cent of Europe’s steel exports – worth around £5billion – last year went to the United States.
Last night Mr Trump said he planned to impose ‘reciprocal taxes’ on imports in an attempt to reduce to US trade deficit. He tweeted: ‘$800billion trade deficit – have no choice!’