The result is that even some of the U.S.\u2019s closest trading partners are bewildered about where the announcement leaves them.<\/p>\n<\/blockquote>\n
\u201cThe European Union, wonderful countries who treat the U.S. very badly on trade, are complaining about the tariffs on Steel & Aluminum,\u201d he posted on Twitter. \u201cIf they drop their horrific barriers and tariffs on U.S. products going in, we will likewise drop ours. Big Deficit. If not, we Tax Cars etc. FAIR!\u201d he tweeted.<\/p>\n
The tweet \u2014 on top of the imposition on Thursday of sweeping 25 percent tariffs on steel imports and 10 percent tariffs on aluminum imports \u2014 provoked deeper consternation.<\/p>\n
\u201cThe problem is when you say, \u2018All right, let\u2019s have tariffs, but let\u2019s couple that with uncertainty\u2019 \u2014 that\u2019s almost worse,\u201d Senator Jeff Flake, an Arizona Republican pushing legislation to block the tariffs, said Sunday on NBC\u2019s \u201cMeet the Press.\u201d \u201cAnd where one person is basically deciding, you know, tariffs go up or down depending on what kind of behavior \u2026 It\u2019s not the way to do business.\u201d<\/p>\n
The uncertainty has already spooked the stock market and spurred protests from industries as diverse as car parts manufacturers and soybean farmers, which until now had cheered the president\u2019s deregulatory agenda. Many warn they will likely raise prices on consumers because they will be forced to pay more for equipment and materials while facing retaliatory tariffs overseas.<\/p>\n
\u201cThe burden of these tariffs, as always, will be passed on to the American consumer,\u201d said Cody Lusk, president and CEO of the American International Automobile Dealers Association. \u201cCar shoppers looking for a deal will instead find that they are paying a new tax to transport themselves and their families.\u201d<\/p>\n
The exemptions for Canada and Mexico are contingent on the three countries reaching what the U.S. views as a favorable deal renegotiating NAFTA in continuing talks. Every other country will be required to negotiate a separate deal with U.S. Trade Representative Robert Lighthizer to avoid the duties, which are scheduled to take effect in less than two weeks. But the administration has yet to provide any clarity on what that would look like.<\/p>\n
A USTR spokeswoman said last week that \u201cany country with which we have a security relationship is welcome to discuss with the United States alternative ways to address our national security concerns with respect to steel and aluminum imports,\u201d adding: \u201cIf we arrive at a satisfactory alternative means to address our concerns, the president may remove or modify the restrictions.\u201d<\/p>\n
The result is that even some of the U.S.\u2019s closest trading partners are bewildered about where the announcement leaves them. After a meeting with Lighthizer over the weekend Cecilia Malmstr\u00f6m, the European Union\u2019s top trade official, said there was still \u201cno immediate clarity on the exact U.S. procedure for exemption,\u201d so the discussions will continue this week.<\/p>\n
For partners like the EU \u2014 which is the top supplier of steel to the United States in terms of value, though not volume \u2014 the exemptions serve to make the tariffs even more punitive, because their products will now be forced to compete not only with U.S. products but also with Canadian and Mexican materials, which will benefit from not having to pay the tariff.<\/p>\n
\u201cWe are entering an era where trade war is starting to show its teeth,\u201d French Trade Secretary Jean-Baptiste Lemoyne told POLITICO in Brussels. \u201cAnd we think that\u2019s not good news.\u201d<\/p>\n
Justifying the tariffs based on national security under an arcane, 56-year-old law is also likely to spur copycat actions \u2014 besides being in clear violation of the understanding that trade is conducted under internationally agreed rules, not ad hoc negotiations.<\/p>\n
And without a clear-cut exemption process, the move aimed primarily at punishing China now risks leaving U.S. allies from Japan to the EU caught in the crossfire.<\/p>\n
\u201cAll of a sudden you\u2019ve forced them to deal politically with their own backlash at home,\u201d said Chad Bown, a senior fellow at the Peterson Institute for International Economics. \u201cIf you\u2019re thinking about trying to get your key partners to actually cooperate with you on the underlying issue \u2026 it\u2019s going to be much more difficult to get them to do so if at the same time you\u2019re hitting them with tariffs.\u201d<\/p>\n
A number of countries are already threatening retaliation if they are hit with the tariffs. The EU has compiled a list<\/a> of products valued at more than \u20ac2.8 billion that includes everything from lipstick to kidney beans to motor boats that it would hit with its own 25 percent duties, while Japan and South Korea have threatened a challenge at the World Trade Organization.<\/p>\n Allies have little reason not to push back hard \u2014 both to protect their own industries and political base and also because Trump has done little to bolster strong relationships with them.<\/p>\n \u201cThe problem he\u2019s going to have is he didn\u2019t have a reservoir of support or sympathy to begin with,\u201d said Bill Reinsch, a senior adviser at the Center for Strategic and International Studies. \u201cSo nobody owes him anything, and that makes it a lot easier for them to retaliate.\u201d<\/p>\n Republican Senator Jeff Flake of Arizona is pushing legislation in the U.S. Congress to block Donald Trump\u2019s tariffs | Alex Wong\/Getty Images<\/p>\n More surprising may be the outrage in the U.S. from groups that have traditionally backed the president. Agricultural groups express alarm that their products are likely to be hard hit by retaliatory actions, while automobile manufacturers and companies that rely on aluminum cans \u2014 for beer and soup, for example \u2014 have warned the tariffs will raise costs for consumers.<\/p>\n \u201cA tariff is a tax that will result in higher prices that consumers will ultimately bear,\u201d said John Bozzella, the president of Global Automakers. \u201cExemptions will not address the fundamental problems tariffs will create for U.S. car and truck manufacturing. Increased costs will make our industry less competitive and harm American workers, consumers, and our economy.\u201d<\/p>\n Those messages are resonating among lawmakers in Congress, where Republicans in particular who have long shied away from any sort of fight with the White House are coming out forcefully against the tariffs.<\/p>\n Republican Senators Ron Johnson (Wis.) and Cory Gardner (Colo.) both signaled support on Sunday for Flake\u2019s bill to stop the tariffs, though Johnson cautioned it would not likely get enough votes to override a presidential veto.<\/p>\n Still, \u201cI think somebody\u2019s got to try,\u201d Flake said, citing congressional success in the 1970s overriding then-President Jimmy Carter\u2019s tariffs on oils. \u201cI think our allies and others need to know that there is some pushback here.\u201d<\/p>\n Jakob Hanke and Hans von der Burchard contributed reporting.<\/em><\/p>\n Original Article<\/a><\/p>\n [contf] [contfnew] WASHINGTON \u2014 President Donald Trump ratcheted up the economic pressure on the European Union over th..<\/p>\n","protected":false},"author":1,"featured_media":69217,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-69216","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"\n![](\"https:\/\/www.politico.eu\/wp-content\/uploads\/2018\/03\/GettyImages-912828084-714x489.jpg\"\/)
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