U.S. to slap steel and aluminum tariffs on European Union
Source: Axios
Plans for the Trump administration to hit the European Union with steel and aluminum tariffs could be announced as early as Thursday, reports the Wall Street Journal citing people familiar with the matter.
Why it matters: The EU has threatened retaliatory tariffs on U.S. products such as "motorcycles, jeans and bourbon." The report follows Commerce Secretary Wilbur Ross' criticism that the European Union isn't negotiating on trade thanks to the United States' steel and aluminum tariffs, citing China as a counterexample.
What to expect: If the tariffs go through, you'll see domestic and imported steel and aluminum prices spike because the EU is a top supplier.
The EU will likely retaliate almost immediately. Theyve already filed what they plan to do their list of retaliatory measures at the World Trade Organization (WTO.) The EUs big public threats are tariffs on Harley Davidsons and Kentucky whiskey (targeting Paul Ryan and Mitch McConnell respectively.)
The snowball effect: The U.S. imposing tariffs would likely have knock on effects. Until now, the only country that has directly retaliated against the U.S. on these steel and aluminum tariffs is China. Add in to the mix other countries who have made threats but havent retaliated yet.
Read more: https://www.axios.com/us-to-slap-steel-and-aluminum-tariffs-on-eu-4de37663-93dd-4f8c-b3f8-78ddcb3990cb.html
Wellstone ruled
(34,661 posts)the boom on Trump and Wilbur Ross. If you have been following the EU Markets,this appeared to be in the mix as of Monday.
Precision Steel comes form EU countries. Trump just has no clue. With all those Auto Plants in the Red States,good luck with that idea.
politicaljunkie41910
(3,335 posts)lower the boom on McConnell and Ryan's states. Serves them right. Merkel is the NEW Iron Lady. Margaret Thatcher would have took on Trump and probably took him down since he doesn't know shit from Shinola. Theresa May is doing a great job as well. The only woman Trump can seem to put the fear of God in, is his wife.
Wellstone ruled
(34,661 posts)Paul Ryan's District took a direct hit with the loss of Harley deciding to move assembly operations out of Kansas,and you just know those Milwaukee area plants are going to downsize darn soon. And their sub-assembly suppliers most likely will be doing major layoffs by late fall.
Boeing is note going to set idlely by either.
roamer65
(36,747 posts)The EU has long wanted to embargo American agricultural products. They view them as detrimental to the well being of their agricultural industry. GMO crops really aggravated the situation.
jmowreader
(50,562 posts)Harley-Davidson's biggest factory is in Pennsylvania.
They'd probably be better off to tariff cheese. Wisconsin is a world leader in cheese.
mwooldri
(10,303 posts)I'd guess that the volume is very very low. More likely cheese is imported from Europe to the USA. I've not recalled seeing much American cheese in UK supermarkets.
jmowreader
(50,562 posts)The seven nations that export over $1 billion US worth of cheese are Germany, the Netherlands, France, Italy, Denmark, the US and New Zealand. (I really thought before reading this that the top three would be France, Italy and Denmark. I had NO idea the German cheese industry was that big, and I lived there for many years.)
demmiblue
(36,875 posts)The decision is coming hours before temporary exemptions were due to elapse at 12:01 a.m. in Washington on Friday. Unless last-minute deals are reached, the move would mark the Trump administrations most aggressive trade action yet against major trading partners, which had been asking for permanent relief.
Fears of a global trade war are mounting as the Trump administration also considers tariffs on U.S. auto imports and duties on $50 billion in Chinese goods. The International Monetary Fund has warned that a wave of protectionist forces are the biggest risk to the global economic outlook.
https://www.bloomberg.com/news/articles/2018-05-31/u-s-is-poised-to-impose-tariffs-on-eu-canada-mexico-metals?utm_medium=social&cmpid=socialflow-twitter-business&utm_content=business&utm_source=twitter&utm_campaign=socialflow-organic