Read more at https://www.channelnewsasia.com/news/world/overruling-objections--trump-announces-steep-aluminum--steel--tariffs--10004910
02 Mar 2018 11:05AM
Trump is starting and will trigger a Global Trade War by levying tariff.
(1) US importing Countries will retaliate by reciprocal tariff on US goods - and US importers suffer as it will have to pay higher prices.
(2) US producers such as shipbuilders, plane builders, fridge builders, bridge builders, housebuilders, car builders etc that require alumininum or steel will have to buy them at higher cost from domestic or overseas market.
(3) US consumers and taxpayers will suffer as they have to buy goods at much higher prices.
(4) Overseas consumers will no longer buy US goods because it will be price much higher due to the higher alumininum and steel cost. Overall it will has an impact on US economy - as domestic and overseas demand for US goods fall.
(5) In 1930s Deep Depression - it is trigger by US starting a trade war by introducing tariff on imports and subsequently lead to World War 2.
Trump is not learning from all the past lessons.
(1) US importing Countries will retaliate by reciprocal tariff on US goods - and US importers suffer as it will have to pay higher prices.
(2) US producers such as shipbuilders, plane builders, fridge builders, bridge builders, housebuilders, car builders etc that require alumininum or steel will have to buy them at higher cost from domestic or overseas market.
(3) US consumers and taxpayers will suffer as they have to buy goods at much higher prices.
(4) Overseas consumers will no longer buy US goods because it will be price much higher due to the higher alumininum and steel cost. Overall it will has an impact on US economy - as domestic and overseas demand for US goods fall.
(5) In 1930s Deep Depression - it is trigger by US starting a trade war by introducing tariff on imports and subsequently lead to World War 2.
Trump is not learning from all the past lessons.
Trump says 'trade wars are good and easy to win'
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WASHINGTON: President Donald Trump spoke out defiantly on Friday (Mar 2) against global criticism of his plan to impose tariffs on steel and aluminum imports, seeming to welcome the idea of a trade war.
"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," Trump wrote in an early morning tweet.
"Example, when we are down $100 billion with a certain country and they get cute, don't trade anymore - we win big. It's easy!" the president wrote.
After weeks of rumors and counter-rumors about his administration's intentions, Trump on Thursday announced he would sign off on measures designed to protect US producers next week.
The tariffs - 25 per cent on steel and 10 per cent on aluminum - cover two materials that are the lifeblood of the construction and manufacturing sectors.
The announcement was greeted with fury within key US trading allies such as Canada, the EU, Australia and Mexico, as well as rival China.
It also caused jitters across global stock markets.
Traders, already on edge over worries about rising US interest rates, followed Wall Street sharply lower after the president imposed levies on the commodities in his "America First" policy.
"Donald Trump's sudden lurch toward greater trade protectionism has spooked markets," London Capital Group analyst Jasper Lawler told AFP.
"Any tit-for-tat response from other nations to the newly announced tariffs on steel and aluminium imports could spark a trade war."
GERMANY HARDEST HIT?
"While Donald Trump considers himself pro-business, the imposition of tariffs across the aluminium and steel sector has led to fears over a collapse in global trade," added IG analyst Joshua Mahony.
"The threat of a trade war was always likely to hit the export-driven German economy hardest."
Aluminium and steel firms, as well as companies that use the products - such as electronics and auto makers - all took a major hit.
The world's top steelmaker Arcelor Mittal slumped more than four perncent in Paris, while German peer ThyssenKrupp shed almost three perncent in Frankfurt.
German automaker Volkswagen and industrials giant Siemens each lost about three perncent.
ASIAN MARKETS DOWN
Asian equities also dived, with Tokyo tumbling 2.5 per cent after Bank of Japan boss Haruhiko Kuroda indicated the central bank could start looking to wind in crisis-era stimulus as early as next year.
"I think the selloff was a number of things - not just trade - but including Kuroda's comments on timelines for exit of stimulus," said William Hamlyn, investment analyst at Manulife Asset Management.
"Markets are trying to decide whether this (Trump's tariffs move) is just specific to steel or whether it's the first step in a broader anti trade agenda," he added.
The Trump news, which was even opposed by elements inside the White House, was met with anger from key allies including the EU and Canada. China has previously warned it would be forced to act should Trump push through such measures.
The tycoon had campaigned on a protectionist platform, saying the US was being taken advantage of by other countries, and promised to throw up barriers to protect jobs at home.
Markets have also been slammed this week after new Federal Reserve boss Jerome Powell fanned expectations of sharper-than-expected US interest rate increases, while investors remain anxious over Sunday's looming election in Italy.
However, Powell struck a softer tone on Thursday, stressing that future rate hikes would be gradual and allow the world's biggest economy to expand.
Read more at https://www.channelnewsasia.com/news/world/trump-says-trade-wars-are-good-and-easy-to-win-10008088
China says following US example will harm global trade
image: data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==
BEIJING: Global trade will be harmed if countries follow the example of the United States, China's foreign ministry said on Friday (Mar 2), after President Donald Trump said he would impose tariffs on imported steel and aluminum to protect US producers.
Chinese ministry spokeswoman Hua Chunying made the comment at a regular news briefing, adding that President Xi Jinping's top economic adviser Liu He had constructive exchanges on economic issues with US officials in Washington on Thursday.
Source: Reuters/aa
Read more at https://www.channelnewsasia.com/news/asiapacific/china-says-following-us-example-will-harm-global-trade-10006872
Read more at https://www.channelnewsasia.com/news/asiapacific/china-says-following-us-example-will-harm-global-trade-10006872
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