The deadline for the relief initiative on the tariffs on foreign steel and aluminum is Friday and United States President Donald Trump announced that he would not be extending the waiver on these tariffs.
At midnight Thursdays, the exemption will expire and Mexico, Canada, and the European Union (EU) will all be hit with stiff trade penalties. According to a statement by Commerce Secretary Wilbur Ross, the US will begin assessing tariffs of 25 percent on imported steel and 10 percent on imported aluminum.
Both Mexico and the EU wasted no time in saying that they would respond with penalties of their own against the US. Mexico said they would retaliate with tariffs against American pork, cheese, fruit, lamps, and flat steel. The EU did not announce specific products yet but did say that they explore the issue. Canada has not announced retaliatory efforts, however, Prime Minister Justin Trudeau has scheduled a press conference later on Thursday to discuss the plan.
By imposing tariffs on Canada and Mexico, two of the biggest trade partners of the US, negotiations regarding NAFTA could be negatively impacted.
Financial experts worry that the decision to impose these tariffs will raise everyday prices on a variety of products for American consumers. The decision also comes at an inopportune time, as the US is already engaging in an escalating trade dispute with China. On Tuesday, the White House announced that it was continuing its plan to impose tariffs totaling more than $50 billion on Chinese imports.
United States President Donald Trump said on Thursday that the U.S. is prepared to place additional tariffs on Chinese goods equalling more than $100 billion. Many fear that Trump’s statements can only serve to exacerbate an already tenuous situation with Beijing that could end in an all-out trade war.
President Trump expressed that he was responding to what he considers to be “unfair retaliation” from China after Beijing released a statement on Wednesday detailing $50 billion in tariffs to be placed on American imports into China. The move by the Chinese government was in direct response to $50 billion dollars in tariffs on Chinese goods announced by the Trump administration the day before.
Trump went on to express disappointment at the fact that instead of choosing to ‘remedy its misconduct,’ the Chinese government instead chose to take measures that would cause harm to American farmers and manufacturing companies.
The doubling down by Trump comes on the heels of an attempt by his advisors to calm fears of a looming trade war between the world’s two largest economic powers by characterizing the tariff threats made by both nations to be simply the beginning of negotiations.
Financial analysts believe the move by Trump to be a dangerous ploy on the part of the president aiming to back China down and cause Beijing to become compliant with changes America wants to see in regards to Chinese business practices.
The announcement made by Trump drew immediate criticism from politicians, retailers, and manufacturers representing states that depend on agriculture to fuel their economies.