Posts tagged with "Aluminum"

Putin challenges Trump’s tariffs

July 5, 2018

Russia has requested talks with the United States on President Donald Trump’s decision to impose new duties on steel and aluminum—the first step in formally challenging the action at the World Trade Organization. Indeed, the subject may come up at the July 16 summit  in Helsinki, Finland, already scheduled by Trump and Russia’s President Vladimir Putin.

The complaint filed Monday is the seventh initiated by a WTO member against Trump’s new tariffs, following cases brought by China, India, the European Union, Canada, Mexico, and Norway, Politico reported on July 2.

Moscow’s move comes just as the Trump administration is mulling 25% tariffs on auto imports in the name of national security.

The U.S. imported $192 billion in new passenger vehicles in 2017, according to Chad Bown, a senior fellow at the Peterson Institute for International Economics.

Russia claims the U.S. duties of 25% and 10% on imports of steel and aluminum products, respectively, are inconsistent with provisions of the WTO’s General Agreement on Tariffs and Trade 1994 and the Agreement on Safeguards, Politico said.

The Trump administration imposed the duties under Section 232 of the 1962 Trade Expansion Act, which allows a president to restrict imports to protect national security.

However, rather than accept the U.S. national security rationale for the steel and aluminum duties, other WTO members are treating the restrictions as emergency “safeguard” restrictions, Politico reported. Such restrictions are allowed under WTO rules but must meet certain criteria to pass muster. Steel safeguard restrictions imposed by former President George W. Bush in 2002 were struck down by the WTO.

The EU, Canada, Mexico, China and others also have retaliated against the U.S. steel and aluminum duties, arguing that they are entitled to take such steps because the United States did not compensate them for imposing safeguard restrictions.

On tariffs, 48%  of Americans disagree with President Trump’s imposition of new levies on steel and aluminum imports, while 36% agree, according to findings of a recent CBS News poll. When asked specifically about tariffs on Canadian imports, the number of Americans who disagree rises to 62%. Fifty-eight percent of Republicans approve of the Canadian tariffs.

Research contact: @CBSNews

Trump imposes steel, aluminum tariffs on EU, Canada and Mexico

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.

Research contact: peter.brown@quinnipiac.edu