[James]

Trump steel tariffs: European Union gears up for trade war
2 hours ago

European Union officials have said they will respond "firmly" if US President Donald Trump presses ahead with his plan for steep global duties on metals.

EU trade chiefs are considering slapping 25% tariffs on around $3.5bn (£2.5bn) of imports from the US, Reuters news agency reports.

World Trade Organization Director General Roberto Azevedo said: "A trade war is in no one's interests."

The rhetoric ramped up as Mr Trump tweeted that "trade wars are good".

International condemnation has greeted the US president's Thursday announcement that he plans to impose a 25% tariff on steel imports and 10% on aluminium next week.

What are EU officials saying?

The European Union is reported to be considering retaliatory tariffs, targeting US steel, agriculture and other products.

European Commission head Jean-Claude Juncker promised to react firmly.

"We will not sit idly while our industry is hit with unfair measures that put thousands of European jobs at risk," he said.

Speaking to a German TV programme, he vowed: "We will put tariffs on Harley-Davidson, on bourbon and on blue jeans - Levi's."

French economy minister Bruno Le Maire said there would "only be losers" in a US-EU trade war.

Mr Le Maire vowed a "strong, co-ordinated and united response from the EU".


Are trade wars good?

By Theo Leggett, business correspondent

If trade wars really were good and easy to win, the World Trade Organisation probably wouldn't exist.

Most countries believe that negotiations are best carried out and disputes settled through a rules-based system. Introducing trade barriers on a tit-for-tat basis has the potential to harm companies on both sides.

But that's unlikely to bother Mr Trump. His campaign rhetoric drew heavily on the perceived threat to traditional US industries from foreign interlopers acting unfairly. He's simply continuing in that vein.

And it's unlikely to register much with the steelworkers of Pennsylvania and Indiana. Concerned about their jobs and the future, many will welcome Mr Trump's comments.
What does Trump administration say?

Mr Trump tweeted on Friday morning that the US was "losing billions of dollars on trade" and would find a trade war "easy to win".

Skip Twitter post by @realDonaldTrump

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. 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!
— Donald J. Trump (@realDonaldTrump) March 2, 2018


End of Twitter post by @realDonaldTrump

Critics argue that the tariffs would fail to protect American jobs and ultimately raise prices for consumers.

But US Commerce Secretary Wilbur Ross used a can of Campbell's Soup to defend the tariffs on Friday morning as "no big deal".

He told CNBC the duties would have a negligible effect on the price of a tin, amounting to less than a cent.

"Who in the world is going to be too bothered?" he said.



Who else is unhappy?

Canada, Mexico, China, Japan and Brazil also say they are considering retaliatory steps.

The prime minister of Canada - which exports more steel to the US than any other country - slammed the tariffs as "absolutely unacceptable".

Justin Trudeau told reporters in Ontario he is "confident we're going to continue to be able to defend Canadian industry".



A Chinese foreign ministry spokesman said: "If all countries followed the example of the United States, [it] will undoubtedly result in a serious impact on the international trade order."

The International Monetary Fund (IMF) said Mr Trump's restrictions "are likely to cause damage not only outside the US, but also to the US economy itself".

Kosei Shindo, chairman of the Japan Iron and Steel Federation said that the move "will create a negative chain reaction affecting not only steel but also other products considered to have national security implications".

Many US companies also expressed alarm, including beer brewers, which use aluminium for canned beverages.

Anheuser-Busch InBev NV, the world's largest beer maker, warned that Mr Trump's plan is "going to put jobs at risk and would be against the US consumer".

Skip Twitter post by @MillerCoors

Like most brewers, we are selling an increasing amount of our beers in aluminum cans, and this action will cause aluminum prices to rise. It is likely to lead to job losses across the beer industry. (2/3)
— MillerCoors (@MillerCoors) March 1, 2018

End of Twitter post by @MillerCoors


What are the stakes for US?

Mr Trump has lamented the decline of the US steel industry, which since 2000 has seen production drop from 112m tons to 86.5m tons in 2016.

The number of employees working in the sector has fallen over the same period from 135,000 to 83,600.

But experts say far more Americans work in industries that depend on steel products, than are employed in steel plants.

Steel mills in 2015 employed about 140,000 Americans, according to census data.

But 6.5 million Americans work for manufacturers who make things using steel.

http://www.bbc.co.uk/news/world-us-canada-43264200

[bitontheslide]

Will be interesting to see if this then prices the USA out of the market given that the 25% will be passed on to consumers. It can get into an infinite cycle

[Maru]

Well, it is what he campaigned on. We'll see how it goes, but I don't personally have very high hopes... probably more likely to fuel rhetoric than fuel the economy

[James]

Now could be tariffs on EU-made cars.

Trump steps up war of words on trade with threat to tax EU cars
3 March 2018


US President Donald Trump has stepped up his war of words over trade tariffs, threatening to "apply a tax" on imports of cars from the European Union.

Mr Trump said other countries had taken advantage of the US for years because of its "very stupid" trade deals.

The trade wrangle began on Thursday when Mr Trump vowed to impose hefty tariffs on steel and aluminium imports.

That brought a stiff response from trading partners and criticism from the IMF and WTO.

EU trade chiefs have reportedly been considering slapping 25% tariffs on around $3.5bn (£2.5bn) of imports from the US, following Mr Trump's proposal of a 25% tariff on imported steel and 10% on aluminium.

They would target iconic US exports including Levi's jeans, Harley-Davidson motorbikes and Bourbon whisky, European Commission head Jean-Claude Juncker said.


What has Mr Trump said now?

In a tweet on Saturday, the president said: "If the EU wants to further increase their already massive tariffs and barriers on US companies doing business there, we will simply apply a Tax on their Cars which freely pour into the US.

"They make it impossible for our cars (and more) to sell there. Big trade imbalance!"

A second tweet decried the "$800 Billion Dollar Yearly Trade Deficit because of our 'very stupid' trade deals and policies".

Mr Trump added: "Our jobs and wealth are being given to other countries that have taken advantage of us for years. They laugh at what fools our leaders have been. No more!"
How many EU-made cars go to the US?

The US is the largest export market for EU cars - making up 25% of the €192bn (£171bn; $237bn) worth of motor vehicles the bloc exported in 2016 (China was second with 16%).

Germany is responsible for just over half of the EU's car exports, so new US tariffs would hurt the car industry there. But German carmakers also build hundreds of thousands of cars in the US every year - providing many US jobs that German officials say Mr Trump overlooks.


Do fellow Republicans back Mr Trump's trade threats?

A number have questioned the wisdom of the tariff proposal and have been urging the president to reconsider.

Senator Orrin Hatch said: "I'm very surprised, he's had very bad advice from somebody down there. The people who are going to have to pay these tariffs are going to be the American citizens."

Senator Ben Sasse said: "Kooky 18th Century protectionism will jack up prices on American families - and will prompt retaliation."

And industry bodies like the US Motor and Equipment Manufacturers Association have expressed deep concern, saying the benefits from the recent cuts in corporation tax "could all be for naught".

But Mr Trump's Commerce Secretary Wilbur Ross stood firmly behind the plans, saying the president was "fed up with the continued over-capacity, he's fed up with the subsidisation of exports to us".
Why does he want to impose tariffs?

It chimes with his "America First" policy and the narrative that the US is getting a raw deal in its trade relations with other countries.

Mr Trump tweeted on Friday that the US was "losing billions of dollars" and would find a trade war "easy to win".

Skip Twitter post by @realDonaldTrump

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. 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!
— Donald J. Trump (@realDonaldTrump) March 2, 2018

End of Twitter post by @realDonaldTrump

The president is using a clause in international trade rules which allows for tariffs for national security reasons.

But his move has not come totally out of the blue.

The commerce department recommended tariffs in February after conducting a review under rarely invoked national security regulations contained in a 1962 trade law.

Mr Trump had already announced tariffs on solar panels and washing machines in January.
What has the international response been?

The IMF said others could follow the US leader's precedent by claiming tough trade restrictions were needed to defend national security.

Canada said tariffs would cause disruption on both sides of the border. Prime Minister Justin Trudeau slammed the tariffs as "absolutely unacceptable".

He told reporters in Ontario he was "confident we're going to continue to be able to defend Canadian industry".

It is one of several countries, including Brazil, Mexico and Japan, that have said they will consider retaliatory steps if the president presses ahead with his plan next week.



World Trade Organization Director General Roberto Azevedo said: "A trade war is in no-one's interests."

But Mr Trump tweeted, "Trade wars are good.".....

From http://www.bbc.co.uk/news/world-us-canada-43270388

It's cutting off your nose to spite your face, if you ask me.

[bitontheslide]

There are no winners in trade wars, and if it escalates, it's going to put the UK in an interesting position during brexit negotiations as we won't be tied to any EU tit for tat charges.

[Maru]

As I think about it, this may end up being a total dumpster fire, but not on whether this works or not.

Trump has yet to really divest his business ties. So it's certainly possible this could become a "pay to play" scheme ... he's already quite open about blatantly using his businesses and properties to entertain foreign dignitaries. I could see where a complimentary ego stroke (his mortal weakness) and a promise to invest or scratch regulations in certain areas regarding his businesses could get someone far in negotiations...

I read this yesterday about his response to the Chinese president getting rid of term limits. I have thought about his relationships with Putin (as a person) and how he is attracted to power relationships....

Also there is the joke that his opinion is usually shifted by the last person he speaks to. He has a intense distrust (even distaste) of lonewolfs and he has booted folk who are not sycophants... I think hints towards the types of power relationships he has/will continue to build abroad... and this isn't a good thing if he is setting economic policy based on these conversations.

His tweets are embarrassing for us sometimes, but his biggest black mark in my book is that he simply doesn't care about whether or not he uses his office to increase the reach of his brand...

My opinion, instead of focusing on rigged townhall "debates" and engaging in Twitter asspats... the press should be targeting/protesting the promotion of his businesses. But they're just as corrupt as he is and totally dependent on him for ratings (and I'm thinking likely in bed with at least one of either major parties), so they will likely continue allow this to fly underneath the radar...

[Wizard.]

Better a trade war than a blood war

[Maru]

Originally Posted by Riley.

Better a trade war than a blood war

What if it's blood money?