Recently, the United States announced a tariff increase against imports of steel and aluminum in the United States, including from the European Union, Mexico and Canada. And it’s going to come into effect on Friday, according to Donald Trump’s trade secretary, Wilbur Ross. Indeed, Washington is about to launch a trade war against its partners. Moreover, they fought back by threatening to do the same to the Americans. But negotiations would probably be under way to minimize the impact of such a decision on the global economy.
Washington’s comments on the taxation of steel and aluminum imports
In recent times, the United States has made the news world. Following the announcement of the “historic” summit with North Korea, Washington has announced a new statement, which this time may create tension with other partner countries. According to US Trade Secretary Wilbur Ross, a significant increase in steel and aluminum tariffs will come into effect on Friday. The Americans did not take into account the temporary exemption of the EU. According to these words, the United States has decided not to offer “a permanent and unconditional exemption on taxes”. And the same goes for the two North American free trade partners, including the Aléna with Mexico and Canada. The main countries affected by this aggressive increase are the European Union, Mexico and Canada. On the other hand, Washington has informed that a negotiation with South Korea on a steel quota has been made. On the other hand, Argentina, Australia and Brazil will limit the volume of steel and aluminum they will export to the United States instead of tariffs.
It’s for “national security”. The goal set by Washington is to rebalance the US trade deficit. According to the analyzes conducted against this decision, this increase in taxes could be beneficial for employment in North America as is already the case with the imposition of tariffs with Japan, China, Turkey and Russia. Specifically, the customs tax on steel will be up to 25%, while for aluminum, it will be a slight increase of 10%. But this Washington decision will have a significant impact on the economic relationship between the parties involved.
The international response to the aggressive words of the United States
After the announcement of Donlad Trump’s trade secretary, the European Union was quick to respond. In particular, the President of the European Commission Jean-Claude Juncker has not hesitated to fight back in Brussels. According to these reports, the European Union will certainly counterattack. It is also possible to refer the same thing to the United States. Indeed, the European Commission will take this case to the WTO. Then, it is also necessary to increase the customs duties of certain products imported from the United States.
Among other things, the reaction does not take long to come. On the side of France, the French Secretary of State for Environmental Affairs denounced this kind of decision. He described it as “unjustifiable and unjustified” and that a solution should be found quickly. On the part of the Germans, the answer to “America first” will be “united Europe”. Mexico also took the wrong decision and announced retaliation.