June 1, 2018
The Trump administration will levy onerous steel and aluminum tariffs on its close allies—the European Union, Canada and Mexico—starting today, in a move likely to lead to retaliation and risk the future of the North American Free Trade Agreement (NAFTA), The Hill reported.
U.S. Commerce Secretary Wilbur Ross said in a conference call with the media on May 31 that—following months of entreaties from the three trading partners—the president had decided to end temporary exemptions.
This is not a step that the American public support, based on results of a recent Quinnipiac Poll. U.S. voters oppose (50% to 31%) tariffs on steel and aluminum, and disagree (64% to 28%) with President Donald Trump’s claim that a trade war would be good for the U.S. and easily won, the researchers found.
Every listed party, gender, education, age and racial group opposes steel and aluminum tariffs, except for the Republicans, who support tariffs by a lackluster 58% to 20%; and white voters with no college degree, who are divided (42% to 40%).
American voters oppose these tariffs (59 % to 29%), Quinnipiac found, if these tariffs raise the cost of the goods they buy. Indeed,American voters disapprove (54% to 34%) of the way in which the POTUS is handling trade.
Ross said on Thursday, “We look forward to continued negotiations with Canada and Mexico on one hand; and with the European Commission on the other hand, as there are other issues we need to get resolved.”
The Commerce Secretary noted that the Trump administration would need to see the reactions of Canada, Mexico and the 28-nation EU bloc before determining what to do next.
But, The Hill reported, he said that U.S. officials are “quite willing and eager” to have further discussions with all of the parties.
The trading partners all had warned America that they intended to impose retaliatory tariffs on U.S. exports, if President Trump made this move.
According to The Hill, the EU is expected to quickly retaliate with promised tariffs of about $3.3 billion on iconic American products such as bourbon, jeans and motorcycles.
Last year, nearly 50% of U.S. steel and aluminum imports came from the EU, Canada and Mexico. Trump first announced tariffs of 25% on steel and 10% on aluminum for national security reasons in March.
Canada and Mexico also have said that tariffs are unacceptable, don’t affect U.S. national security and that their implementation could put the fate of NAFTA at stake.
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