US President Donald Trump is expected to unveil a fresh swathe of tariffs this week, including 25% on all steel and aluminium imports.
The US president also says he’s planning to impose “reciprocal tariffs” on countries currently taxing US imports – but did not specify which nations would be targeted, or if there would be any exemptions.
Canada and Mexico are two of the US’s biggest steel trading partners, and Canada is the biggest supplier of aluminium into the US.
Canada warns the tariffs would have a damaging impact on its economy while Australia says thousands of American jobs could be lost if Trump pushes ahead with his plans.
The move marks another escalation in Trump’s trade policy, which has already sparked retaliation from China – Beijing’s retaliatory tariffs on some US exports came into effect today.
Last week, Trump brought in a 10% tariff on all Chinese imports which prompted a host of retaliatory measures from China.
It is targeting around $14 billion (£11.2 billion) worth of US goods, triggering fears that the world’s two largest countries are on the brink of a trade war.
China has imposed tariffs of 15% on US coal and liquefied natural gas, and 10% on coal, crude oil and farm equipment as well as some large-engine cars.
But this is not a heavy blow to American firms and the impact will be limited. This appears to be a calculated move by Beijing to hit back, but in a way that it keeps the door open for President Xi to negotiate with Trump.
The White House suggested last week there would be a phone call between the two leaders, but Trump later said he was in “no rush” to speak to the Chinese president.
China’s Foreign Ministry warned Washington once again today that there are no winners in a trade war and “what is needed now is not the unilateral imposition of tariffs, but rather dialogue and negotiation”.
In other words – China is ready to talk.
Source: BBC
