Trump has imposed a steel metal tariff on U.S. allies, which could move the country closer to a trade war. USA Today reports that Commerce Secretary Wilbur Ross said that Canada, Mexico and the European Union would be subject to a 25% tariff on steel and a 10% tariff on aluminum. Ross said the aim was to reduce the U.S. trade deficit.
Ally countries are not happy with the decision. Canadian Prime Minister Justin Trudeau said that these tariffs are unacceptable, and is an insult to the long-standing partnership between the U.S. and Canada.
The move sparked criticism from Democrats and Republicans alike, especially those with large agricultural industries.
Eswar S. Prasad, former head of the International Monetary Fund’s China division, said this decision could get the Trump administration some short-terms wins, but said “it could eventually result in the U.S. playing a diminished” role in global trade.
Many top construction executives are worried about the tariffs. Ann Wilson of the Motor and Equipment Manufacturers Association said that added costs will put investments and jobs at risk.
The Trump administration is relying on a law that claims that imports represent a threat to national security.
Does this mean a trade war is coming? 24% of people voted yes, while 76% of people voted no, not yet. Read the full story on USA Today here.
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Trump imposed a steel metal tariff on US allies. Does this mean a trade war is coming?
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