Europe retaliates against United States heartland following Trump trade threats

Europe retaliates against United States heartland following Trump trade threats

Efforts by Trump and US trade negotiators to link the NAFTA trade pact talks to the duties received short shrift from Ottawa and Mexico City.

By contrast, Canada, Brazil and South Korea are the top three steel exporters to U.S., representing 16 percent, 13 percent and 10 percent of total United States steel imports respectively.

But Canada isn't the only country the United States has to worry about.

Whatever U.S. steel producers might gain from a trade war would be offset by the losses to steel users and consumers, plus the social costs of protecting uncompetitive jobs.

The United States actually runs a trade surplus in services with China, as it does with many other countries, in part by attracting Chinese students to study at USA colleges, which counts as an export.

"We have large trade deficits with Mexico and Canada".

Trump's plan has ignited a firestorm of opposition, with criticism from around the globe, senior members of his own party, and top manufacturers including Ford Motor Co.

His actions are based on three primitive fallacies.

Trump ignited fears of a trade war and an outcry from major trading partners with his surprise announcement about the steel and aluminium tariffs, and an even broader threat to impose reciprocal tariffs on all imports from countries that impose duties on usa exports. "We've know that in the USA now for a while". But those court cases take about 18 months to wind their way through WTO courts, and Trump's trade team has indicated it may not respect all WTO rulings anyway. Wrong!" Trump wrote. "People will always come & go, and I want strong dialogue before making a final decision.


Edward Alden, a senior fellow at the Council on Foreign Relations specializing in worldwide trade, also predicted a net loss of jobs last week when the tariffs were first proposed.

"To protect our Country we must protect American Steel!" You're punishing the American consumer and our allies.

"So now we will also impose import tariffs". American export competitiveness will suffer as production costs rise. Instead, they'll retaliate with tariffs on USA goods. But it's not China, it's Canada, Brazil and South Korea. If it plans to dump all of its dollar bonds into the market and stop imports, it will have to pay a higher price to alternative suppliers. More than 60 percent of those were exported to foreign markets.

American exporters will lose their relative competitiveness in those markets as well. "In terms of purchases of goods from overseas, the figures would be reduced, but even more so if considered in terms of US GDP, accounting for 0.2%". Workers at his company take raw steel and fashion into the parts used in cars, refrigerators and other household products.

It is automation more than global trade that costs jobs in the sector in the long term, and that will mean no boost of long-term employment in steel, much less in the economy at large (with a sure loss of jobs outside of the protected metals industries). "But cumulatively what we are seeing is an increase in protectionism in the USA that's going to prompt retaliatory actions on the part of other economies - the EU, China". "I think you are hearing some of that smooth operator (commentary)". "Imposing sweeping measures like this is generally not the way forward".

After the latest trade spat settles down, a USA establishment that has been willing to meekly follow such leadership could end up being a few notches lower in everyone's esteem.

"We're still in a flying circus act".

But either way, the battle over trade in Washington is not over yet. He believes Trump's latest reference to the treatment of USA farmers suggests he will resume his attacks on Canada's supply-managed dairy system.

US bond yields rose as Wall Street shares rallied. Federal budget cuts on science, advanced technology, and environmental safety that leave the USA less competitive and highly vulnerable to hurricanes, floods, and forest fires. Since net exports are exports minus imports, it may seem as though imports and trade deficits reduce GDP.

Related Articles

  • Firmino: Liverpool hoping to face English opposition in Champions League

    Firmino: Liverpool hoping to face English opposition in Champions League

    Four teams have already gained access to the quarter-finals of the Champions League . If United get the first goal then they won't come out and give him that space.
    Trump highlights talks with European Union  over `unfair´ tariffs

    Trump highlights talks with European Union over `unfair´ tariffs

    South Korea , the third-largest steel exporter to the United States and a strategic ally on the Korean peninsula, called for calm. The target of Trump's ire is China, whose capacity expansions have helped add to global surpluses of steel.
    Serena vs Venus, tennis' greatest sibling rivalry resumes at Indian Wells

    Serena vs Venus, tennis' greatest sibling rivalry resumes at Indian Wells

    It is Serena that holds the better of the head-to-head between the siblings, with 17 wins to her name compared to Venus' 11. Serena is returning to the tour after more than a year away after pregnancy and childbirth.
  • Nazi 'Bookkeeper of Auschwitz' dies after prison sentencing

    Nazi 'Bookkeeper of Auschwitz' dies after prison sentencing

    One million European Jews were slaughtered in Auschwitz, only a sixth of the number who died as part of the Nazi regime overall. Most recently, his lawyers made one final bid for clemency, a decision on which still was pending.
    Seahawks to release DeShawn Shead, hope to re-sign him

    Seahawks to release DeShawn Shead, hope to re-sign him

    The San Francisco 49ers signed cornerback Richard Sherman over the weekend. "It definitely had a part of it", Sherman said. Sometimes quarterbacks can get hot and the next year fall off the face of the Earth and you do not hear from them again.
    Finish 2G probe in six months: Supreme Court to CBI, Enforcement Directorate

    Finish 2G probe in six months: Supreme Court to CBI, Enforcement Directorate

    The agency had found that the approval given in the Aircel-Maxis deal was given by Chidambaram beyond his mandate. Roles of P Chidambaram and Karti is under scanner because of the complexity of Aircel-Maxis case.
  • Time and date for Champions League quarter-final draw

    Time and date for Champions League quarter-final draw

    But whomever they get in next Friday's draw, which is free from geographical or group stage restrictions, will not concern them. Geographical restrictions are removed for the quarter-final draw, with Liverpool and Manchester City already through.
    Hamill named as St Patrick's Festival Guest of Honour

    Hamill named as St Patrick's Festival Guest of Honour

    We in Tourism Ireland are extremely grateful to Mark for his wonderful comments about the Wild Atlantic Way and Ireland. A film insider said: "It's a huge secret, but Jabba is returning to the Star Wars universe".

    Will Katy Perry kiss again?

    This " American Idol " retains the show's original host, Ryan Seacrest , along with the same logo and production companies. Luke Bryan , Katy Perry and Lionel Richie all appeared in the first episode of " American Idol " reboot on Sunday.
  • Ryan Coogler pens tribute to one of his heroes Ava DuVernay

    Ryan Coogler pens tribute to one of his heroes Ava DuVernay

    Then she infused the love she had for her father, and her mother who is still with us, into the lovely film " A Wrinkle in Time ". The first destination is attractive and like nothing they have ever seen before, while the next is creepy and unwelcoming.
    Smart out indefinitely with torn thumb tendon

    Smart out indefinitely with torn thumb tendon

    Boston, having already clinched a playoff berth, can use the remainder of the regular season to get healthy. The Boston Celtics had a number of injuries dumped on them Monday, and the latest could be the worst.

    Westbourne Investment Advisors Inc. Decreases Holdings in Bank of America Corp (BAC)

    Driehaus Cap Mngmt Ltd Limited Liability Company holds 0.01% of its portfolio in Amgen Inc. (NASDAQ:AAPL) for 6,442 shares. The stock of Bank of America Corporation (NYSE:BAC) has "Outperform" rating given on Saturday, September 5 by Oppenheimer.