U.S. tariff exemptions to boost Australian exports: industry

U.S. tariff exemptions to boost Australian exports: industry

Using his authority under Section 232 of the Trade Expansion Act, Trump's move came after the Commerce Department determined that illegal dumping of millions of tons of sub-par foreign steel into the USA marketplace is threatening US national security by undermining the domestic iron ore and steel industries and putting thousands of miners and steelworkers out of work. Indeed, most European Union countries are in North Atlantic Treaty Organisation, the world's biggest security alliance, together with the U.S.

In the end, Trump's tariffs might help him win the battle for Ohio, Michigan, Pennsylvania or Wisconsin, but they will lose him the war in terms of trade. President Trump should now focus on protecting the entire manufacturing supply chain through broader trade remedies, including efforts to address currency exchange issues. "It is bad for European citizens, for Dutch citizens and it will turn out bad for USA citizens as well".

In the event of any European Union retaliation, Trump has threatened to also hit Europe's carmakers with import tariffs.

After a telephone call with Turnbull on Friday, Trump posted a Twitter message saying that Turnbull "is committed to having a very fair and reciprocal military and trade relationship". China has repeatedly vowed to defend its "legitimate rights and interests" if targeted by United States trade actions. According to a Morgan Stanley report, India exports less than 1% of its steel produced to the U.S. which accounts for 4% of the country's total exports.

"The last time we had a president who was this kind of an economic nationalist was really the Richard Nixon administration", Sands noted.
Some countries have even threatened to retaliate against the protectionist move. "FAIR!" Mr. Trump said in a tweet. "We are hoping we are not forced to use them", he said, but noted that "if the worst case scenario happens, we are ready to take the USA to the WTO [World Trade Organization] court".

Canada is the biggest source of United States steel imports, while Mexico is in the top five, meaning a significant share of imports will be exempt from the tariffs. Agricultural groups express alarm that their products are likely to be hard hit by retaliatory actions, while automobile manufacturers and companies that rely on aluminum cans - for beer and soup, for example - have warned the tariffs will raise costs for consumers. If they don't cooperate, they will pay a toll or tariff.

Instead, Juncker appears to have fallen into a trap where Trump can now quite properly justify further tariffs against European Union auto imports that only attract a US tariff of 2.5 per cent - compared to the EU's tariff on USA cars of 10 per cent. It agrees with ACC that the tariffs will be harmful to competitiveness.

"A lot of steel mills are now opening up because of what I did", he said.

Those messages are resonating among lawmakers in Congress, where Republicans in particular who have long shied away from any sort of fight with the White House are coming out forcefully against the tariffs.

There's no indication from the American President that he'll stop at simply raising the metal bar. "I think our allies and others need to know that there is some pushback here".



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