Trade War Looms After Trump Announces Steel And Aluminum Tariffs

Trader Gregory Rowe works on the floor of the New York Stock Exchange, Friday, March 2, 2018. Stocks are opening lower Friday as investors remain concerned that President Donald Trump’s plan to impose tariffs on steel and aluminum imports will lead to retaliation from other countries.
Trader Gregory Rowe works on the floor of the New York Stock Exchange, Friday, March 2, 2018. Stocks are opening lower Friday as investors remain concerned that President Donald Trump's plan to impose tariffs on steel and aluminum imports will lead to retaliation from other countries. AP Photo/Richard Drew
Trader Gregory Rowe works on the floor of the New York Stock Exchange, Friday, March 2, 2018. Stocks are opening lower Friday as investors remain concerned that President Donald Trump’s plan to impose tariffs on steel and aluminum imports will lead to retaliation from other countries.
Trader Gregory Rowe works on the floor of the New York Stock Exchange, Friday, March 2, 2018. Stocks are opening lower Friday as investors remain concerned that President Donald Trump's plan to impose tariffs on steel and aluminum imports will lead to retaliation from other countries. AP Photo/Richard Drew

Trade War Looms After Trump Announces Steel And Aluminum Tariffs

President Donald Trump announced on Thursday that, as early as next week, he will impose a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports. Trump inferred the current trade imbalance is a threat to U.S. national security. His rhetoric was primarily aimed at China, but Canada and Brazil will most likely bear the brunt of such tariffs, according to a report from the U.S. Commerce Department.

“It is entirely inappropriate to view any trade with Canada as a national security threat to the United States,” said Canada’s Foreign Minister Chrystia Freeland. “Should restrictions be imposed on Canadian steel and aluminum products, Canada will take responsive measures … ”

European officials used tougher language in response. German Foreign Minister Sigmar Gabriel called the move “unfathomable. Bernd Lange, a German MP and head of the European Parliament’s trade committee, said, “With this, the declaration of war has arrived.”

Reportedly, Trump’s decision does not have wide support within his own administration. We’ll discuss a looming trade war with Phil Levy, senior fellow on the global economy at the Chicago Council on Global Affairs.