John Cassidy writes about Trump’s new tariffs on steel and aluminum, noting that while Trump has often spoken of a trade war with China, these new protectionist policies will hurt the E. U. and Canada more.
Donald Trump has got the trade war he’s always wanted. And right now it’s hitting some of America’s closest allies harder than China, the country he repeatedly berated on the campaign trail for its unfair trading practices. At midnight on Thursday night, tariffs of twenty-five per cent went into effect on imports of steel from Canada, the European Union, and Mexico. A tariff of ten per cent went into effect on aluminum imported from the same countries.
With all the different trade skirmishes that the Trump Administration is involved in, it’s getting difficult to keep track. These are the metal tariffs that were originally announced in March; they are already in effect on steel and aluminum products from a number of countries, including China and Russia. But China only exports about three billion dollars’ worth of steel and aluminum to the United States, whereas Canada and the European Union between them export more than twenty billion dollars’ worth—so they will be hit harder.
Back in March, the Trump Administration granted a permanent exemption from the tariffs to South Korea after Seoul agreed to restrict metal exports. It granted temporary waivers to Canada, the E. U., and Mexico and started negotiating with them. The June 1st deadline for the waivers came without any agreement being reached, and the Administration decided not to extend it.
Even as the White House allowed the waivers to expire, Commerce Secretary Wilbur Ross told reporters on Thursday that he wanted to keep talking with the Canadians, Europeans, and Mexicans. But they promised to respond to the American move by vowing to impose tariffs on U. S. exports such as soybeans, bourbon, and blue jeans. The E. U. also said it would take legal action against the United States, at the World Trade Organization, which is supposed to be the governing body on trade disputes.
This is how trade wars escalate, and there’s no telling where this one will end up. A tit-for-tat spiral could imperil the growing U. S. economy that Trump inherited and hurt many G.
