Trump has touted the tariffs as a way to revive the USA steel and aluminum industries, in keeping with his promises both on the campaign trail and in the White House that he will seek deals that better favor American workers.
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Peak industry body the Ai Group is urging the Turnbull government to plead for sanity before a “catastrophic” trade war ignites after President Donald Trump’s administration announced hefty tariffs on steel and aluminium.
Steel and aluminum producers in the US applauded the move.
As well as damaging European and Japanese auto manufacturers, the tariffs could become a massive own goal for America’s vehicle industry, which has ramped up production at factories in Mexico and Canada in recent years.
He said the imposition of new tariff on import of aluminum and steel would create new jobs in the industry.
The EU’s targeting of bourbon whiskey and motorcycles had been expected and matches similar moves in 2003 during a “steel war” unleashed by the administration of then-US president George W. Bush.
“We are telling them here’s the price now, if you want this price you need to get it because it is going to go up, and we have some customers ordering more of it”, he said.
“To me, it’s just beyond comprehension that the president somehow thinks that Canada is the problem”, he added, predicting the tariff would cause “significant harm” on both sides of the border.
Equity markets across Asia and Europe fell steeply following Trump’s announcement Thursday of the tariffs, which was followed Friday by a series of provocative statements on Twitter that seemed to invite a trade war. And he feared they will trigger cascading trade restrictions around the globe.
Closer to home, the European Commission said it viewed worldwide trade as a win-win in which everyone benefits, but warned that it will respond to defend its interests.
The steel industry has pointed to Australia’s existing anti-dumping measures as a way to combat the fallout from Donald Trump’s proposed tariffs on steel and aluminium imports, while the Coalition and Labor have raised the prospect of direct trade retaliation.
Jean-Claude Juncker, president of the European Commission, said the EU will “react firmly” in the coming days with countermeasures. Trump has long accused China and others of what he calls unfair trade. “It’s not going to be in the best interests of anyone to begin a trade war”.
Canada and the European Union have already vowed to introduce their own countermeasures and Mexico, China and Brazil said they were also considering retaliation.
U.S. manufacturers would also have enhanced pricing powers as the cost of foreign imports would become prohibitive for those buying steel.
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Senator Ben Sasse agreed that “kooky 18th Century protectionism will jack up prices on American families”.
