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'Didn't You Guys Burn Down White House?': Trump Justifies Tariff War

07 June 2018
'Didn't You Guys Burn Down White House?': Trump Justifies Tariff War

That led to threats of retaliation. USA stocks were trading higher on Wednesday.

NAFTA, the three nation trade pact, generally prevents the US, Mexico and Canada from imposing tariffs on imports from one another.

According to a survey of US CEOs, many are scaling back their hiring and spending plans due to fears of a trade war.

Mr. Trump was notably more muted in his treatment of Mexico and the European Union, even as they announced similar retaliations.

A tariff is basically a tax on imports that raises the price of foreign company's products for American consumers, putting imports at a disadvantage to domestic producers.

Randall Schweller, a rare worldwide relations scholar who supports Trump, said the death of the Soviet Union and the decline of Daesh (also known as ISIS) mean "the USA doesn't need its allies like it used to".

The package would include increased purchases of US soybeans, corn and other agricultural goods. More importantly, steel exports to the USA make up more than half of total Canadian production.

In addition to the agricultural products and bourbon, Mexico imposed tariffs on a variety of United States steel products exports.

The tariffs imposed Tuesday will affect just more than 1% of USA exports to Mexico.

Mexico imported about $1 billion worth of pork past year.

"When you have to compromise with a whole bunch of countries, you get the worst of the deals", Kudlow said.

"If the numbers are accurate, an additional $70 billion in USA exports to China would be considerable - a 50 percent increase in US exports from 2017 levels", Chad Bown, a senior fellow at the Peterson Institute for International Economics, said in an email.

"I know we're going to have some very, very frank conversations quite clearly around the table", Trudeau told Global TV, adding he would convey Canada's displeasure over the tariffs personally when he met Trump in Quebec.

So far, only Canada and Mexico have done so.

These are expected to target US-produced metals and other products such as jeans and whiskey.

Kudlow said allies should understand that Trump "will do what is necessary to protect the US, its businesses and its workforce", adding that Trump "has always said, and I agree, tariffs are a tool in that effort". "And they want to blame him for using tariffs". In 2017, it was the second-largest importer of USA steel and steel products, which will now face an additional 25 percent tariff, in line with what the US has imposed. Certain cheeses and bourbon will be hit with 20% to 25% duties. -Canada relationship - as well as the effort by Canadian politicians of different stripes to appear united when they press Washington on trade issues.

Meanwhile, separate sources said China has offered to boost purchases of American goods by about US$25 billion this year to fulfil President Donald Trump's desire to shrink the United States trade deficit with the world's second-largest economy.

"The U.S. tariff on steel is affecting those workers today", said Scheer, who noted Canada's steel industry employs more than 23,000 workers and indirectly supports more than 100,000 jobs.

For example, if automakers have to pay more for the steel used in cars, you'll see that effect when you visit your local dealer.

And higher prices for things that require steel or aluminum like cars, planes, construction and appliances can slow the rest of the economy.

The reaction of the EU, Canada and Mexico raises the possibility the facing down a full-blown trade war - even as it does the same with China.