In chapter 6 our class covered U.S. tariffs, and read a summary
of the sugar subsidies in our text book. I came across a headline ‘U.S. eyes global Tariff of “at least” 24% on steel
imports’ which I thought would be a great foundation to discuss in my groups
blog. Just recently on Thursday Trump formally announced his plan to impose 25%
tariff on imported steel and 10% tariff on imported aluminum. Looking further
into the tariff on aluminum and steel there were mixed reactions from other
countries. President Trump is convinced that the tariff will be beneficial to
our country, expecting business expansion and job opportunities for the United
States. Following Thursdays announcement China reacted with cautious criticism,
while Europe reacted with sharp backlash and retaliation. “We will put tariffs
on Harley-Davidson, on bourbon and on blue jeans- levi’s,” European Commission
President Jean-Claude Juncker said, “we cannot simply put out heads in the sand.”
China is not worried about the U.S. tariff and does not intend to start a trade
war since China accounts for only 2% of U.S. imports, however China does expect
the tariff to be self-defeating and is not afraid to start a trade war if needed.
“what an extremely stupid move,” vice secretary general of the China Iron and Steel
association said, “A desperate attempt by Trump to pander to his voters.” China
has proclaimed that their country is in its prime but feels the world trade
will be harmed if other countries follows the United States example. The European
Union is considering imposing duties on U.S. imports that are worth about $3.5
billion if the tariff is enforced. Canada, South Korea and Mexico have also
raised their concerns on the tariff. As far as the other countries are
concerned Donald Trump is promising his “America First” agenda by declaring a
trade war.
Denyer, Simon, and Rick Noack. “China Grumbles at Trump's
Tariff Move, but Europe Takes Aim at Harleys and Bourbon.” The Washington
Post, WP Company, 2 Mar. 2018,
https://www.youtube.com/watch?v=b5AmKCUhVIw
(this link is the video announcement that President Trump made on March 1st)
Another thought I have to add to this conversation, is that in class we looked at steel producers by country and we saw that the U.S is a very low steel producer compared to other countries like China and Canada. That makes me think why is it such a big deal to other countries that these tariffs will be implemented, when they can easily go to other major producer countries and buy steel for cheaper prices than the U.S? I am unsure why people are getting very upset about this. This type of large tariff can be bad just in general, but for how small of a steel producer that America is, it confuses me.
ReplyDelete