Trump Announces Tariffs, EU Threatens Retaliation

"The European Union’s trade chief on Friday warned of possible retaliation if U.S. President Donald Trump’s plans to impose hefty tariffs on imported steel and aluminum apply to Europe."

Australia is also talking about retaliation. China hasn't yet but it's unlikely it remains silent if it turns out the tariffs only apply to it. The metals market will be interesting to watch in the next week.

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It could be total trade war: all against the U.S.
 

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Everyone knows that trade wars are job killers and don't forget it's a easiest way to lose elections..

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Canada says would retaliate against U.S. steel or aluminum tariffs.

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Not just Canada. The same reactions are already coming from  EU, Asia (including China, Japan, S. Korea) , Australia. It doesn't smell good.

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t could be a big, big, mistake. This is support a few thousand people, and it sounds great to the base. But, it's completely miss the big picture. Steel-using industries in the U.S. employ some 6.5 million Americans, while steel makers employ about 140,000. 

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20 minutes ago, Pavel said:

Canada says would retaliate against U.S. steel or aluminum tariffs.

Much of the steel made with in Canada is exporter to the US . It’s used in many industries. And aluminum that is made to n Quebec as well. It will drive up prices of U.S. domestic goods. 

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Can anyone explain comparative advantage to Trump

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just look at today's stock market after the announcement

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Here's one of the potential effects: " An economist for Cox Automotive told Bloomberg the proposed tariffs would add about $200 to the total price of a vehicle.”

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And ... despite the nice rise in steel stocks over the past weeks, at today's market open they're down a lot. 

AKS is down over 4% already this morning, and US Steel is 5.89%. 

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EVERYTHING is down. Dow lost 420 points over this at close yesterday. Ford and GM are also down as this tariff reality sets in for the auto industry. Of course, Ford and GM are down for lousy trucks sales, too, but the tariffs aren't helping, either. Everyone's afraid of the trade war and inflation. 

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World Trade Organization Director General Roberto Azevedo expressed concern at U.S. President Donald Trump’s plan for tariffs on steel and aluminum. it isn't usual for WTO to give comment for situation like this, but it's obviously how the potential for escalation is real.

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The European Union is considering applying 25 percent tariffs on around $3.5 billion of imports from the United States if President Donald Trump carries out his plan to apply global duties to steel and aluminum.

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This will hurt business, consumers and everyone's economy. It might actually change the world.

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I guess the results remain to be seen, but some of these things go together, I think. The fact that Pennsylvania will be hit hardest by any new gas tax, and pacified with the boon from steel tariffs is probably not coincidental. 

Pennsylvania has largely been hemorrhaging voters in recent years, losing electoral votes each year. 2016 was first year it swung to Republican in quite some time. One of the counties that went blue holds Pennsylvania's largest steel mill--the country's second largest steel mill. And while Democrats largely ignored Pennsylvania during the campaign, a mistake they probably won't make again.

 

 

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WHAT THE HECK is the EU whinging about now? "Hello, Pot? This is Kettle." http://money.cnn.com/2017/05/12/news/economy/china-steel-europe-dumping/index.html?iid=EL

 

From a may 2017 story: "Europe has imposed nearly 20 similar measures designed to penalize the Chinese steel industry. 'The EU currently has an unprecedented number of trade defense measures in place targeting unfair imports of steel products related to high levels of industrial overcapacity and subsidies in China,' the European Commission said in a statement."

 

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It's like a bad movie in the making. "Trade Wars: Blue Jeans vs. Steel"

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yes, well, China is dumping ... big time. But this isn't even the point. The point is the broader economy. Protectionism rarely works out the way one hopes it to. And it's not going to be an 'easy win' as indicated on Trump Twitter. 

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Watch how it throws a wrench in the oil and gas industry, which imports both steel and aluminum for drilling, rigs, pipelines, export terminals. It's going to get too expensive. OPEC should be tickled. 

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German carmakers send a message how trade war with U.S. must be avoided. Fear spreads.

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33 minutes ago, damirUSBiH said:

German carmakers send a message how trade war with U.S. must be avoided. Fear spreads.

The bulk of Germany’s exports has to be cars.

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Nope. Machinery, chemicals, pharmaceuticals, white goods. Germany makes stuff, high quality, value added.

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8 hours ago, LAOIL said:

Watch how it throws a wrench in the oil and gas industry, which imports both steel and aluminum for drilling, rigs, pipelines, export terminals. It's going to get too expensive. OPEC should be tickled. 

We'll I guess we'll find out. I suspect he will renegotiate the tariffs with CA and Mexico in exchange for something else--like better NAFTA terms.

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Maybe, but he's said already that there will be no 'country' exemptions. Maybe some specific product exemptions, but that was vague. 

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