Trade Partners Aim Retaliation at Trump-Supporting States

The White House plan to recast his nation’s trade relations may soon hit U.S. farmers and manufacturers, as America’s trade partners prepare retaliatory tariffs worth a collective $3.45 billion.

The European Union has threatened $1.6 billion of additional levies in response to U.S. tariffs on metal imports; Russia prepared $537.6 million of added duties; Turkey $266.6 million; Japan $264.3 million; and India $165.6 million, according to filings with the World Trade Organization. China already imposed $611.5 million of additional retaliatory tariffs.

The tariffs are in response to a move by the U.S. in March to impose import duties of 25 percent on steel and 10 percent on aluminum, giving regions including the EU, Mexico and Canada temporary exemptions while they negotiate alternate resolutions. While the EU has indicated a willingness to discuss means of resolving global steel overcapacity, European leaders have said they won’t begin negotiations until Trump has provided a permanent exemption on the metals tariffs.

“As a matter of principle, we will talk about everything with a friendly country that respects WTO rules,” French President Emmanuel Macron said after the U.S. tariffs were enacted. “But, by the same principle, we won’t talk about anything while there’s a gun pointed at our head.”

The countries that have filed preliminary complaints with the WTO seek to pressure the White House to withdraw the metal duties by specifically targeting U.S. goods that are produced by voters in states that sent Trump to the White House.

Steel tariffs may go into effect as early as Friday.

Source: Bloomberg