Trump's Trade Tariffs Could Signal A New Global War

Trump's Trade Tariffs Could Signal A New Global War

March 23 in the US will come into effect duties on steel imports (25%) and aluminium (10%) by order of the President. The steel (25 percent) and aluminum (10 percent) tariffs came with exemptions (Canada and Mexico, at least provisionally) and potential outs for others, dominating last week's trade news.

Prime Minister Justin Trudeau is touring steel in aluminum and steel factories in Quebec-beginning in the Saguenay region.

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.

Trudeau said tariffs on Canada would have made it harder to get a deal, and said he raised that with the president.

Chinese leaders, while denouncing the tariffs, have said a trade war with the not good for either side.

In an interview Monday with CNN's Anderson Cooper, Trudeau addressed the notion that the temporary exemption would serve as a bargaining chip for the the NAFTA talks.

The US president said he will have the right to raise or lower tariffs on certain countries, or add or drop countries from being exempted from tariffs.

"Although we support the administration's goals to protect the U.S. steel industry and steel mill workers, the disparity in numbers demonstrates that U.S. steel-consuming industries contribution a more significant percentage of U.S. GDP and have more at stake with the imposition of these tariffs than the U.S. steel-producing industry", ACA President and CEO William Hanvey, wrote in the signatory of the letter. "While we are grateful that our trading partners, Canada and Mexico, are now exempt, it is our view that these tariffs will quickly become a tax on the fix and maintenance of vehicles, a tax that will ultimately be paid for in higher fix prices by the American auto owner".

The only countries temporarily exempted are Canada, Mexico and Australia so far.

"The case in 232 is the argument that for national security reasons we need to maintain a high level of production of some particular commodity", says Nicholas Lardy, senior fellow at the Peterson Institute for International Economics.

Prime Minister Justin Trudeau speaks with workers during a visit to Stelco Hamilton Works in Hamilton Ont., Tuesday, March 13, 2018.

His cross-country tour, with stops in Quebec, Sault Ste.

Trudeau said Canada still had a lot more work to do and would press Washington to ensure the exemptions were permanent, and Canada has emphasized that tariffs would hurt both the United States and Canada. The talks had been scheduled to end this month, but all sides plan to keep working to try to reach an agreement no matter how long it takes.