IMF, WTO warn USA over new steel and aluminium tariffs

Donald Trump says 'trade wars are good' as Wall Street reacts badly to news of steel tariffs

Donald Trump says 'trade wars are good' as Wall Street reacts badly to news of steel tariffs Credit UPI Barcroft Images

Still the WTO gives companies broad leeway to define their own national security interests and could prove reluctant to declare Trump's steel tariffs a violation of global rules.

The mining association claims steel dumping from China helped close half the state's mines in 2015.

Auto lobbyists were still scrambling to learn the details of the tariffs and if they would apply to all countries and for what time period.

For U.S. manufacturers of cars, planes and machinery, the tariffs present a twofold threat.

The tariffs - 25 per cent on steel and 10 percent on aluminum - cover two materials that are the lifeline of the construction and manufacturing sectors in the US.

Additionally, both he and CNBC's Mike Santoli considered the tariff news additive to ongoing market worries and attributed Friday's decline in part to the ongoing corrective phase.

Sens. Sherrod Brown, D-OH, and Rob Portman, R-OH, also expressed support for tariffs on foreign steel.

So has Trump, who this week summoned steel and aluminum executives to the White House and declared he would levy penalties of 25 percent on imported steel and 10 percent on aluminum imports.

"Markets are particularly vulnerable if we see retaliatory moves", said Ric Spooner, chief analyst at stock broker CMC Markets.

"We are doing something absolutely within our right".

"This is a hostile act to all of them", he said.

"This is going to have fallout on our downstream suppliers, particularly in the automotive, machinery and aircraft sectors", said Wendy Cutler, a former US trade official who is now vice president of the Asia Society Policy Institute.

The European Commission said last night that it would formally announce details of policies targeting the USA "in the next few days" to "rebalance" the global trade playing field after Mr Trump's move.

"We have to keep hoping" for an exemption for Canada, Simard said.

Mr Lidington suggested the American authorities could overrule any tariffs, as they did in the case of aircraft manufacturer Bombardier when Mr Trump's administration threatened huge duties on its C-wing planes.

In another tweet he said other countries, "laugh at what fools our leaders have been".

"We are not protectionist".

Trade Minister Steve Ciobo says he spoke to the US commerce secretary, Wilbur Ross, about the US President's announcements on the tariffs.

Other nations imposed stiff tariffs in return, hurting US exports.

"If we fail to stand up for steel jobs today, China will come after other jobs up and down the supply chain tomorrow".

Jean-Claude Juncker said plans to put tariffs on products such as Kentucky bourbon, Levi's jeans and Harley-Davidsons had not been finalised.

Earlier, he had blamed the US's "very stupid" trade deals for, according to him, an $800 billion annual trade deficit.

Trump has built a deep connection to the steel industry, rooted in promises he made on the campaign trail in 2016.

"The Commission will bring forward in the next few days a proposal for World Trade Organization-compatible countermeasures against the rebalance the situation", he said.

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