Trump Kills 25% of Tariffs for Steel, Aluminum, Increased New Concerns about Trade War
In a surprise move, President Donald Trump announced on Monday that he would be reducing tariffs on steel and aluminum imports by 25% for several countries, sparking new concerns about the ongoing trade war. The decision comes just days after the United States and China agreed to a temporary truce in their trade dispute.
The tariffs, which were initially imposed in March 2018, were intended to protect the domestic steel and aluminum industries by making foreign imports more expensive. However, the move has been widely criticized by other countries, including the European Union, Canada, and Mexico, which have imposed retaliatory tariffs on American goods.
Under the new plan, the tariffs on steel and aluminum imports from Argentina, Australia, Brazil, Canada, and Mexico will be reduced from 25% to 10%. The tariffs on steel imports from South Korea will be reduced from 30% to 20%. The reductions will take effect on June 18th.
The decision has been met with mixed reactions from the business community. Some industries, such as construction and manufacturing, have welcomed the move, saying it will help reduce costs and increase competitiveness. However, others, such as the steel and aluminum industries, have expressed concerns that the reductions will lead to a flood of cheap imports and undermine the domestic industry.
"This is a huge mistake," said Tom Gibson, president of the American Iron and Steel Institute. "The tariffs were necessary to protect our industry and ensure that we have a level playing field. Reducing them now will only benefit foreign producers and harm American workers."
The move has also raised concerns about the impact on the ongoing trade war with China. The United States and China have been engaged in a bitter trade dispute for over a year, with both sides imposing tariffs on each other’s goods. The truce agreed to last week was seen as a major breakthrough, but the reduction of tariffs on steel and aluminum imports could undermine the agreement.
"This is a major mistake," said Peter Navarro, the White House trade advisor. "We need to keep the pressure on China to get a good deal. Reducing tariffs now will only embolden them and make it harder to get a fair agreement."
The decision has also sparked concerns about the impact on the global economy. The trade war has already had a significant impact on global trade, with many countries imposing retaliatory tariffs on American goods. The reduction of tariffs on steel and aluminum imports could lead to a surge in imports and put pressure on global supply chains.
"This is a major risk for the global economy," said Mark Zandi, chief economist at Moody’s Analytics. "The trade war has already had a significant impact on global trade, and reducing tariffs now could lead to a surge in imports and put pressure on global supply chains."
In conclusion, the reduction of tariffs on steel and aluminum imports by 25% has sparked new concerns about the ongoing trade war. While some industries have welcomed the move, others have expressed concerns about the impact on the domestic industry and the global economy. The decision has also raised questions about the impact on the ongoing trade war with China and the truce agreed to last week.
