Published: Wed, March 14, 2018
People | By Leon Thompson

What could Europe offer Trump to escape tariffs?

What could Europe offer Trump to escape tariffs?

Simon Lester, an expert on WTO law at the libertarian Cato Institute, said there was also a risk that the European Union could set a precedent akin to the one it was accusing the U.S. of making by using a rarely used national security loophole in global trade rules.

"It's going to give us an opportunity and one of the best guys in the administration, Ambassador Robert Lighthizer [the USA trade representative], to negotiate a great deal for this country, and if we get that, then all's good with Canada and Mexico".

But the drama isn't over. Trump excluded Canada and Mexico from his orders, referring such discussions to the NAFTA process.

The formal tariff announcement is expected Thursday afternoon.

A White House trade adviser called that idea "provocative", but didn't outright say Trump wouldn't do such a thing.

It should not come as much of a surprise that Trump would raise tariffs. "If we do there won't be any tariffs on Canada, and there won't be any tariffs on Mexico" the US President was quoted by CTV News.

"If America imposes duties on steel and aluminium and Canada doesn't walk away from NAFTA immediately then make no mistake we will no longer be negotiating, we'll be capitulating", said Dias. "And if we get that, all's good with Canada and Mexico".

While everyone around Trump is getting a case of the vapors about him starting a worldwide trade war, it is Canada and Mexico who may be the real targets of the impending steel and aluminum tariffs. While America's almost $20 trillion economy today may be able to shrug off any long-lasting effects of the coming trade spats, one thing is for sure: There will be far more losers than winners.

The European Union warned before the announcement that it was ready to retaliate with counter-measures against iconic US products such as Harley Davidson motorcycles, Levi's jeans and bourbon.

The Canadian government isn't celebrating yet.

The White House has yet to announce the timing and extent of the planned tariffs.

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"Rio Tinto has recently been growing its market for Kitimat aluminium in the US, and given that, ironically, our countries are now attempting to renegotiate a new fair trade agreement under NAFTA, this move by the troubling to our members".

The tariffs aren't being imposed just as a "negotiation ploy" for updating NAFTA, Ross said. "It has been great for China and awful for the United States". Thus, overall it is in the hopes of many congressional members to "avoid a confrontation with the administration and instead work with the president to enact trade policies the broader GOP can get behind" (NPR).

Behind the scenes, a full-court, 11th-hour diplomatic press was underway Wednesday.

The Republican lawmakers are right, too, to wonder if it was wise for Congress to give the president so much power to set tariffs. As in the case of sectors negatively affected, the national companies of the country and their employees who are positively affected are also the citizens of the country.

A poll this week suggested the measures are unpopular.

"Today is a step forward", Chrystia Freeland, Canada's foreign minister, told reporters in Toronto March 8.

Moody's Analytics Inc. forecast the tariffs would erode the competitiveness of a wide range of USA manufacturing companies including in the transportation, construction and heavy machinery sectors.

Trudeau, meanwhile, spoke with the president this week.

The tariffs could reduce US growth by as much as 0.2 percentage point this year, and the economy would sustain more damage if trading partners retaliate, with the greatest risk coming escalating duties, Barclays Plc economists said.

President Donald Trump's call last week for tariffs of 25 percent on steel and 10 percent on aluminum imports has stirred fears of a global trade fight.

The biggest American business lobby is among those fighting the plan. Those viewpoints became the centerpiece of his presidential campaign, and he vowed to not only slap tougher tariffs on exports, but also withdraw the United States from multilateral free trade agreements with allies in Asia and North America.

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