Breaking: Trump’s Imposed Tariff May Trigger World Trade Wars
As if US President Trump’s latest foreign policy on immigration ban and the Republican Tax Law wasn’t enough, he imposes trade tariff that might trigger a trade war in the world. Just this week, the International Monetary Fund (IMF) joined China in warning the United States of the potential harm in Trump’s imposed of astounding 25% tariff on metal imports. However, the President Trump remains steadfast and even stated that the impending trade wars will be welcomed during his administration.
China and European Countries To Retaliate on US Bikes Over Trump’s Tariff
Aside from China warning the US of the impending trade war, Europe has also released a statement about the controversial issue. Jean-Claude Juncker, European commission president, warned that its members will retaliate if Trump continues imposing the tariff. Within a few days or months, the United States should expect strikes against its iconic brands like Harley-Davidson, Kentucky Bourbon, and Levi’s jeans.
This is in response to Trump imposing 25% tariff on 0% tariff on aluminum and 25% on steel. He further added that their next course of action will act like a boomerang effect on the way Americans treat European trade products.
The European Commissioner’s warning came in perfect timing as the IMF warned Trump that his plan may cause international damage in trading and may harm America’s economy. Not only that, but the construction and manufacturing sectors of steel and aluminum will be greatly affected too. Moreover, more world leaders have already joined Europe and China’s side. Even Justin Trudeau, the Canadian Prime Minister itself stated that the tariff was “unacceptable”. Japan’s steel industry also warned President Trump to reconsider his plan as it will have a dire and harmful effect on worldwide trade.
Good for the US Economy?
President Trump reiterated that the US economy was already losing billions of dollars in every country it trades with because of the lax tariff on metal import. Trump only did his part by enforcing and imposing strict regulations when it comes to metal trade to maximize the country’s profit from exportation. He even gave an example that it’s better not to trade with a particular country at all than to lose around $100 billion in the process.
On the other hand, giant businessmen and investors all over the world are urging the world leaders to take action and remedy the situation before it’s too late. In fact, the Ministry of Commerce in China was the first to express grave concern about the import tariff. They are hopeful that the White House will conduct a series of negotiations and hopefully resolve the dispute before it’s too late. However, China will also undertake some necessary measures to defend their country’s national interest against Trump’s high importation tariff.
Latest Action Plan Draws Mixed Reactions to US Industry
As usual, Trump’s controversial decision-making became the talk of the town. Washington’s strongest business group named the Business Roundtable vehemently opposed the President’s decision, stating that this will be the perfect recipe for hurting the US economy. Furthermore, it can also cause massive shut down of American companies, affecting its workers in the process and the inflation rate which would rise due to increased prices for the consumers.
Senior Economist at Economics Policy Institute, Robert Scott, said that it’s high time to raise the tariff. According to him, it’s been long overdue. He also stated that the President merely fulfilled his promise on cracking down the imports of metals as the government conducted its investigation a year ago. Not long ago Trump ordered the investigation on aluminum and steel importation because of national security threats. Furthermore, the 25% imposed on metal tariff will protect the US Steel economy. But will the price of protecting the US Steel Industry be worth it when it could trigger trade wars that will affect the US’ booming economy?
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