US President Donald Trump on Monday denied "backing down" on his decision to impose a 25% import duty on steel and another 10% on aluminium.
As the world reacted to President Trump's announcement regarding impending steel and aluminum tariffs, many are also looking at how the development will impact the ongoing NAFTA renegotiation talks. Knowing the US ultimately has as much or more to lose, Canada is unlikely to be bullied into making serious concessions at the NAFTA table to avoid Trump's tariffs.
Trump's tariff plan is "the most irrational economic policy that any President has ever introduced in the last half century", says the former U.S. Treasury Secretary. The International Monetary Fund (IMF) said last Friday that the import restrictions announced by Trump would not only hurt the United States, but also other economies. "Highly restrictive. Mexico must do much more on stopping drugs from pouring into the US". "Millions of people addicted and dying". "This would place the US automotive industry, which supports more than 7 million American jobs, at a competitive disadvantage". That totals to a loss of roughly 146,000 jobs, a study by The Trade Partnership says. "There will be tariffs on steel for Canada and for Mexico".More news: Lunardi's Latest Bracket Update doesn't Make Much Sense
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While it's unclear what exactly would qualify as a "new and fair" deal for Trump, the president previously called NAFTA "the worst trade deal in history".
Dudenhöffer estimated that U.S. consumers could see the cost of a new vehicle rise by 10% to 20% if the president were to follow through with punitive tariffs.
Trump ignited fears of a trade war and an outcry from major trading partners with his surprise announcement about the steel and aluminium tariffs, and an even broader threat to impose reciprocal tariffs on all imports from countries that impose duties on USA exports.
Trump made his comments after a spokeswoman for House Speaker Paul Ryan said the Republican leader was "extremely worried" about a trade war. Other companies dependent on steel and aluminum experienced losses as well.
"We are not looking to get into trade wars", he said.
Trump's trade skirmishes now have multiple fronts.