Published: Tue, March 13, 2018
World | By Melba Underwood

Area Steel Company Will Take a Big Hit From Trump Tariffs

Area Steel Company Will Take a Big Hit From Trump Tariffs

Mr. Trump hinted at being more lenient toward allies like Canada, Mexico and Australia during a Cabinet meeting last week. Last week, the Motor and Equipment Manufacturers Association (MEMA) released a reaction to the legislation.

"We have to protect our steel and aluminum industries while at the same time, showing great flexibility with people who are really friends of ours", the USA president said during a White House press conference.

The big worry is that U.S. trading partners will retaliate. U.S. Commerce Secretary Wilbur Ross said he wasn't anxious that other countries would slap tariffs on U.S. products, "Retaliation isn't going to change the price of a can of beer".

Brussels has gone the furthest in fighting back against Washington's shock measures, loudly announcing a list of United States products to hit with countermeasures if its exports are affected by the tariffs.

Shadow International Trade Secretary Barry Gardiner criticised Fox for taking 10 days to make a statement to the House of Commons following the Trump administration's announcement of tariffs. And yet they send their cars and everything else back into the USA, he said. For if Trump makes the USA an erratic and chaotic trade partner, Australia will be seen by China, South Korea, India and ASEAN as safe, reliable and on side in the Asia-Pacific.

"Thank you for confirming new tariffs won't have to be imposed on Australian steel & aluminum - good for jobs in Australia and in United States!" The Commission spokesman also pointed to US import duties of up to 48 percent on shoes, 12 percent on textiles and 164 percent on peanuts.

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Amid fears of a global trade war, the 28-member European Union is among those seeking exemptions.

Speaking in the coastal town earlier in the day, Prime Minister Malcolm Turnbull said his government was working to prevent countries from dumping their steel into Australia.

After initial uncertainty, the Trump administration said Mexico and Canada were exempt from the tariffs, which "has been taken as good news", Barríos Gómez added.

Canada is the United States' largest foreign provider of steel and aluminum, with about 85 per cent of Canadian exports being directed to that country. Steel prices have also been on the rise. S&P Global Ratings notes that the United States last year imported $29 billion worth of steel and $17 billion of aluminum - a trifle given that US goods imports totaled $2.4 trillion last year.

"I think a whole range of factors come into these sorts of deals that are made between countries, not just the military one but economic co-operation as well", he told Sky News. Canada and Mexico are exempt from the outset, but the details appear dependent on negotiations.

"We have structured these proclamations in a way which are unequivocally created to defend our aluminum and steel industries", the official said.

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