IMF Says US Import Tariffs To Damage Both US & Trading Partners


The EU's targeting of bourbon whiskey and motorcycles had been expected and matches similar moves in 2003 during a "steel war" unleashed by the administration of then-US president George W. Bush.

Navarro said the message to the world on USA trade practices is simple: "We're not going to take it anymore".

The newspaper said the George W. Bush administration in 2002 imposed high tariffs, hoping to protect US steel firms, which prompted fierce protests from the European Union.

Brazil and South Korea were the only two other countries to crack 10% of the import share, with Mexico and Russian Federation coming in at 9% each. The US had a deficit with Mexico of $63 billion in 2016, and $52 billion in the first three quarters of a year ago.

China - the world's largest steel producer and Trump's primary target - stayed quiet about how it would respond.

White House trade adviser Peter Navarro said Sunday that President Donald Trump is not planning to exempt any countries from his increase in tariffs on imported steel and aluminum coming from foreign shores.

The US levies 2.5% on vehicle imports from countries that don't have a free-trade pact with it and 25% on mini trucks; and the European Union has a tariff of 10% on cars.

United States trading partners already are preparing to retaliate, and have pledged to file a dispute in the World Trade Organization.

On Saturday, Trump threatened European automakers with a tax on imports if the European Union retaliates. "Big trade imbalance!" He added.

Germany warned against protectionist measures, which it decried as "the wrong path". That's because politicians reflect the interests of the hometown industries and workers.

There was speculation that Mr Cohn, who told Mr Trump the markets would slump on a tariffs threat, might step down as a result of Mr Trump's decision, but there was no indication of a such a move anytime soon, a senior White House official said.

The European Union is considering applying 25 percent tariffs on Dollars 3.5 billion of goods - a third steel, a third industrial goods and a third agricultural - to "rebalance" bilateral trade, EU sources said.

If Republicans in Congress are serious about free trade, they can most likely get enough Democratic votes to override a Trump veto of free-trade legislation.

Numerous world leaders and ministers have been in touch with Trump and US officials including Ross, suggesting an intensive behind-the-scenes effort to change the president's mind, the commerce secretary said. Canada is also the biggest importer of US steel and aluminum.

Ross in a television appearance on Sunday repeated that Trump is unlikely grant any exemptions, preferring to use a "broad brush".

The American President is not backing down, not now.

"We are particularly concerned by any measures which would impact the United Kingdom steel and aluminium industries", the spokesperson said.